Skip to content
ENExplore Calculators

Price To Sales Ratio Calculator

Work out price to sales ratio instantly with clear inputs, formula shown and shareable results.

About Price To Sales Ratio Calculator

Price to sales works where earnings are absent or distorted, since revenue is harder to manipulate. Dividing it by the net margin recovers the implied P/E, which shows the profitability the multiple is really assuming.

Formula

Price to sales

P/S = price / revenue per share; implied P/E = P/S ÷ net margin

Worked example

With the default values below, Price To Sales Ratio Calculator returns Price To Sales Ratio of 2.317. Change any input above and every figure here is recalculated in your browser.

Inputs used

Share Priceminimum 0
950
Revenue Per Shareminimum 0
410
Net Profit Marginaccepts -50–60 %
9 %

Results

Price To Sales Ratio
2.317
Revenue Yield
43.16%
Implied Price To Earnings At That Margin
25.75
Revenue Behind Every 100 Of Price
$43.16

Step by step

  1. 1Values used
  2. 2Price to sales
  3. 3Price To Sales Ratio= 2.317
  4. 4Revenue Yield= 43.16
  5. 5Implied Price To Earnings At That Margin= 25.75
  6. 6Revenue Behind Every 100 Of Price= 43.16

Assumptions and limits

  • The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
  • Figures are rounded for display to 3 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.

Frequently Asked Questions

When is P/S most useful?

For loss-making or early-stage companies, and for cyclical firms at a trough in earnings.

What is its weakness?

It ignores costs entirely. Two firms with identical revenue can have completely different economics.

Related Calculators

Price To Sales Ratio Calculator | Calcrivo