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Price to sales ratio |
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Price to sales ratioA financial ratio calculated as: current share price divided by sales per share. Put another way, market capitalisation divided by total sales.A low ratio of market cap to sales is seen as exciting by some investors. Why? Because a small increase in the company's profit margins will thanks to the high level of sales, leverage into large increases earnings per share.However, just because a company has a low PSR does not necessarily make it an attractive investment. For example, the company may operate in very low margin industries such as contracting or construction which make it difficult for margins to improve.Similar MatchesTough on priceTough on priceFirm price mentality at which one wishes to transact stock, often at a discoun../../finance-glossary/premium that is not available at the time. Stated conversion priceStated conversion priceAt the time of issuance of a convertible security, the price the issuer effectively grants the securityholder to purchase the common stock, equal to the par value of the convertible security divided by the conversion ratio. Strike priceStrike priceThe stated price per share for which underlying stock may be purchased (in the case of a call) or sold (in the case of a put) by the option holder upon exercise of the option contract. Price levelPrice levelThe overall level of prices in a country, as usually measured empirically by a price index, but often captured in theoretical models by a single variable. Settlement priceSettlement priceA figure determined by the closing range that is used to calculate gains and losses in futures market accounts. Settlement prices are used to determine gains, losses, margin calls, and invoice prices for deliveries. Related: Closing range. Further SuggestionsBargain purchase price optionsingle price subscription price Factor price frontier Price immunization Administered price Price momentum Price discovery process Basic import price Public offering price Price takers Nominal exercise price Equilibrium price call price Relative price Striking Price Intercal Opening price price sensitive information Sell price Price line Price sales ratio retail price index Flat price (also clean price) Price spread Trigger price |
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