This is a trading item or a component that was created using QuantShare by one of our members.
This item can be downloaded and used by QuantShare Trading Software.
Trading items are of different types. There are data downloaders, trading indicators, trading systems, watchlists, composites/indices...
You can use this item and hundreds of others for free by downloading QuantShare.
Top Reasons Why You Should Use QuantShare:
Works with US and international markets (stock, forex, options, futures, ETF...)
Offers you the tools that will help you become a profitable trader
Allows you to implement any trading ideas
Exchange items and ideas with other QuantShare users
Our support team is very responsive and will answer any of your questions
We will implement any features you suggest
Very low price and much more features than the majority of other trading software
Sometimes called PSR or P/S ratio, Price-to-sales ratio is a stock valuation metric that many analysts consider to be more reliable than the P/E or Price-to-earnings ratio.
The price to sales ratio can be calculated by dividing the stock price by the revenue per share or by dividing the market capitalization of the company by its most recent fiscal year revenue.
The price to sales ratio is usually used to compare companies that are within the same industry; this is because capital structures and profit margins vary vastly between companies that are not in the same industry and therefore the price to sales ratio of these companies will vary a lot too. For example, a company in the discount retailers industry that have a profit margin of 2% will have a very different price to sales ratio than a company in the Internet industry that have a profit margin of 20%.
In general investors prefer to buy stocks with a low price to sales ratio because in this case the investor is paying less money per unit of sales.
The main problem of the price to sales ratio is that it contains little information about a company. It doesn't contain for example information regarding the company's debt; This ratio can tell you that some companies are bargains while these companies are nearly bankrupt.
As with the Research and Development Percentage - US Stocks, Company Net Income - US Stocks and Company Revenues - US Stocks, this trading object downloads historical data of a fundamental item. It downloads price to sales ratio data for companies listed on US exchanges, including the New York Stock Exchange, NASDAQ and American Stock Exchange.
The data spans from 2000 to present; it is saved in a field called "psr" of the "fundamental" database and can be displayed on charts or used to create composites, trading rules, trading systems or neural network models.