Price -- sales ratio, P / S ratio, or PSR, is a valuation metric for stocks. It is calculated by dividing the company 's market cap by the revenue in the most recent year; or, equivalently, divide the per - share stock price by the per - share revenue. Also, justified p / s is calculated as (profit margin × payout × (1 + g) / (r − g)).
what is p s ratio in stock market
Price -- sales ratio