Equity Valuation
Price-to-Sales Ratio
Definition
What is Price-to-Sales Ratio?
Market capitalisationThe market value of a company's outstanding shares, calculated as share price multiplied by shares outstanding. divided by revenue, or share priceThe market price at which one share is quoted or traded. divided by sales per share.
Example in practice
How This Looks in Practice
A ₦20 billion company with ₦10 billion sales trades at two times sales.
Keep learning
Related Terms
Equity Valuation
Earnings Per Share
Net income attributable to ordinary shareholders divided by weighted average ordinary shares.
Equity ValuationDiluted Earnings Per Share
Earnings per share assuming potentially dilutive securities convert into ordinary shares.
Equity ValuationBasic Earnings Per Share
Earnings per share calculated using actual weighted average ordinary shares outstanding.
Cash Flow AnalysisOperating Cash Flow
Cash generated or used by a company's core operations.