answersLogoWhite

0

What is Price to sales ratio?

Updated: 10/24/2022
User Avatar

Wiki User

13y ago

Best Answer

The Price to Sales Ratio (PSR) is a valuation ratio for stocks that is similar to the EPS ratio we saw earlier in this article. It is used to identify how much of revenue is generated compared to the company's market price.

Formula:

PSR = Market Capitalization / Total Revenue

Or

PSR = Current Market Price per Share / Revenue per Share

Revenue per Share = Total Revenue / Total No. of Outstanding Shares

User Avatar

Wiki User

13y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What is Price to sales ratio?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

Fixed operating cost 500 thousands dollars its variable costs are 3 dollars per unit and product sales price is 4 dollars what is the company break even point?

Break even point = Fixed cost / contribution margin ratio Contribution margin ratio = (Sales price - variable cost ) sales price Contribution margin ratio = (4 - 3 ) / 4 = 25% Break even point = 500,000 / .25 Break even point = 2,000,000


How do you calculate the Contribution margin ratio?

sales-variable cost= contribution


What is contribution margin ratio?

contribution margin ratio = (sales - variable costs) / Sales


How calculate expense-to-sales ratio?

sales to expense ratio should be under 10% of your net sales, on a monthly basis


What factors might influence a firm's price-earnings ratio?

The price earnings ratio is influenced by: -the earnings and sales growth of the firms -risk -debt-equity structure of the firm -dividend policy -quality of management -a number of other factors


What is the average expense to sales ratio for a sales representative?

The average expense to sales ratio for Pharmaceutical sales representative is around 8 to 12 % in Pakistan


What is sales output?

ratio of calls to actual sales


The sales price will be set 1.5 times the variable cost per unit and the variable cost per unit is 2.50 The fixed costs are 120000 what sales volume would be required in order to break even?

Break even point = fixed cost / contribution margin ratio Contribution margin ratio = sales price (3.7) - variable cost (2.5) / 3.7 Contribution margin ratio = 1.2 /3.7 = 0.32 Break even point = 120000 / 0.32 Break even point = 375000


How do calculate break even point?

Break even point = Fixed cost / Contribution margin ratio Contribution margin ratio = (sales - variable cost ) / Sales


How do you find contribution margin percentage?

Formula for contribution margin ratio = Sales


What is formula of sales price?

The sales price formula is Sale Price=(Normal Price)(Compliment of Markdown)


How do you find the difference between sales price and actual price?

Subtract the sales price from the actual price!