Valuation
Price to Sales
Price to sales compares equity value with revenue, without adjusting for debt.
P/S is the equity-only cousin of EV/Sales. It is easy to compute from a market cap and a revenue line, which is why screeners love it. It answers how much equity value is attached to each dollar of sales. It does not answer how much of those sales survive as profit, or how much debt a buyer would inherit.
Use it as a coarse screen, then switch to EV/Sales and a margin when the name stays on your list. A falling P/S can mean the stock got cheaper or that sales grew into the valuation. Check which one happened before you call it a deal.
Formula
P/S = Market capitalization ÷ trailing revenue
Live example
Apple Inc. (AAPL) last printed at $346.12 with a market cap of $5.05T. Market cap is the equity value you see above. Enterprise value would add net debt, which this quote row does not itemize.
Related
EV/Sales · Revenue · Market Cap
See it on a list: best stocks · screener
Questions
How is P/S different from EV/Sales?
P/S uses market cap. EV/Sales uses equity plus net debt. EV/Sales is the cleaner comparison across balance sheets.
What revenue period is used?
Trailing twelve months on Stocklytics stock pages, so a single strong quarter does not set the multiple by itself.