Price to Sales (P/S) Ratio Calculator
This calculator computes the Price-to-Sales (P/S) ratio using either total market capitalization divided by revenue or price per share divided by sales per share. Use consistent timeframes (for example, trailing twelve months) and currencies across inputs.
The tool provides multiple calculation paths so analysts can cross-check P/S computed from headline market cap, per-share figures, or implied market cap from price and shares outstanding. Results are indicative and depend directly on the accuracy and consistency of your inputs.
Governance
Record 5a2f4c4ce7cb • Reviewed by Fidamen Standards Committee
Inputs
Results
P/S (Market Capitalization ÷ Revenue)
2
P/S (Price per Share ÷ Sales per Share)
5
P/S (Implied Market Cap from Price × Shares ÷ Revenue)
2
| Output | Value | Unit |
|---|---|---|
| P/S (Market Capitalization ÷ Revenue) | 2 | — |
| P/S (Price per Share ÷ Sales per Share) | 5 | — |
| P/S (Implied Market Cap from Price × Shares ÷ Revenue) | 2 | — |
Visualization
Methodology
Primary formula (market-based): P/S = Market Capitalization ÷ Revenue. Market capitalization is typically share price × shares outstanding (use diluted shares if comparing to diluted-per-share metrics). Revenue should be for the same reporting period and use the same currency.
Per-share formula: P/S = Price per Share ÷ Sales per Share. Sales per share is revenue divided by the same basis of shares used for price. Use this when per-share metrics are already provided.
Alternative check: compute implied market capitalization as Price per Share × Shares Outstanding, then divide by Revenue. This reconciles per-share and total-company approaches and highlights differences caused by share-count adjustments (options, dilution).
Adjustments and best practices: prefer trailing twelve months (TTM) for revenue when available; for forward-looking comparisons substitute consensual forward revenue. For companies with significant net debt consider Enterprise Value-to-Sales (EV/Sales) instead of Market Cap-to-Sales to reflect capital structure.
Key takeaways
Use Market Cap ÷ Revenue for company-level valuation comparisons. Use Price ÷ Sales per Share when working with per-share metrics or when share count is ambiguous.
Watch for differences caused by currency mismatches, fiscal-period mismatches, and share-count definitions (basic vs diluted).
This calculator is for informational and analytic purposes and does not constitute investment advice.
Worked examples
Example 1: Company A has market cap $2,000,000,000 and TTM revenue $500,000,000. P/S = 2,000,000,000 ÷ 500,000,000 = 4.0.
Example 2: Company B has price per share $25 and sales per share $5. P/S = 25 ÷ 5 = 5.0.
Example 3: Reconciliation: Price $10, shares outstanding 100,000,000 → implied market cap = $1,000,000,000. If revenue = $250,000,000, P/S = 1,000,000,000 ÷ 250,000,000 = 4.0.
F.A.Q.
Which P/S measure should I use: market-cap or per-share?
Use market-cap ÷ revenue for company-level comparisons across peers. Use per-share P/S when you only have per-share inputs or when comparing per-share metrics across securities. Always ensure the same basis for shares (basic vs diluted) and revenue period.
How do I handle negative revenue?
P/S is undefined or not meaningful with negative revenue. For companies with negative sales, consider using alternative metrics (for example, price-to-book or EV/EBITDA when earnings exist) and disclose limitations.
Should I use trailing revenue or forward revenue?
Both are used in practice. Trailing twelve months (TTM) revenue reflects recent historical performance; forward revenue uses analyst estimates for expected performance. Be explicit about which you use when comparing companies.
Does this calculator account for debt?
No. This tool computes market-cap-to-sales. For companies with substantial debt or cash differences, Enterprise Value-to-Sales (EV/Sales) is a more appropriate measure to capture total enterprise value.
How accurate are results?
Calculated results are precise arithmetic based on your inputs. Accuracy depends on input quality, timing, currency, share-count methods, and rounding. Use audited financials where possible and cross-check periods and definitions.
Sources & citations
- NIST — National Institute of Standards and Technology — https://www.nist.gov
- ISO 31000 — Risk management — https://www.iso.org/iso-31000-risk-management.html
- IEEE Standards Association — https://standards.ieee.org
- OSHA — Occupational Safety and Health Administration — https://www.osha.gov
- SEC — Investor.gov Educational Resources — https://www.investor.gov/
- CFA Institute — Global Investment Performance Standards (GIPS) — https://rpc.cfainstitute.org/gips-standards
- FINRA — Investment Products — https://www.finra.org/investors/investing/investment-products
Further resources
Versioning & Change Control
Audit record (versions, QA runs, reviewer sign-off, and evidence).
Record ID: 5a2f4c4ce7cbWhat changed (latest)
v1.0.0 • 2025-11-20 • MINOR
Initial publication and governance baseline.
Why: Published with reviewed formulas, unit definitions, and UX controls.
Public QA status
PASS — golden 25 + edge 120
Last run: 2026-01-23 • Run: golden-edge-2026-01-23
Versioning & Change Control
Audit record (versions, QA runs, reviewer sign-off, and evidence).
What changed (latest)
v1.0.0 • 2025-11-20 • MINOR
Initial publication and governance baseline.
Why: Published with reviewed formulas, unit definitions, and UX controls.
Public QA status
PASS — golden 25 + edge 120
Last run: 2026-01-23 • Run: golden-edge-2026-01-23
Engine
v1.0.0
Data
Baseline (no external datasets)
Content
v1.0.0
UI
v1.0.0
Governance
Last updated: Nov 20, 2025
Reviewed by: Fidamen Standards Committee (Review board)
Credentials: Internal QA
Risk level: low
Reviewer profile (entity)
Fidamen Standards Committee
Review board
Internal QA
Entity ID: https://fidamen.com/reviewers/fidamen-standards-committee#person
Semantic versioning
- MAJOR: Calculation outputs can change for the same inputs (formula, rounding policy, assumptions).
- MINOR: New features or fields that do not change existing outputs for the same inputs.
- PATCH: Bug fixes, copy edits, or accessibility changes that do not change intended outputs except for previously incorrect cases.
Review protocol
- Verify formulas and unit definitions against primary standards or datasets.
- Run golden-case regression suite and edge-case suite.
- Record reviewer sign-off with credentials and scope.
- Document assumptions, limitations, and jurisdiction applicability.
Assumptions & limitations
- Uses exact unit definitions from the Fidamen conversion library.
- Internal calculations use double precision; display rounding follows the unit's configured decimal places.
- Not a substitute for calibrated instruments in regulated contexts.
- Jurisdiction-specific rules may require official guidance.
Change log
v1.0.0 • 2025-11-20 • MINOR
Initial publication and governance baseline.
Why: Published with reviewed formulas, unit definitions, and UX controls.
Areas: engine, content, ui • Reviewer: Fidamen Standards Committee • Entry ID: fe33b6f7a2bc