» P/S Ratio Calculator


P/S ratio calculator to calculate price-to-sales from market capitalization and revenue, or reverse solve the P/S formula for stock valuation analysis.

This P/S ratio calculator helps you calculate price-to-sales ratio from market capitalization and total revenue, or solve for a missing input. P/S is a valuation multiple often used when earnings are weak, volatile, or not yet meaningful.

It is especially common in growth-stock analysis and early-stage company comparisons, but it should not be used alone. Revenue quality, margins, and capital intensity still matter when interpreting a P/S multiple.

MC
TR
P/S
Price-per-Sales (P/S) Ratio
×
12×
Interpretation varies by industry
A lower P/S ratio may indicate cheaper pricing relative to revenue, but margins and growth still matter.

$$\mathrm{P/S} = \frac{\text{Market Capitalisation}}{\text{Total Revenue}}$$

$$\mathrm{P/S} = \frac{\mathrm{MC}}{\mathrm{TR}}$$

P/S Ratio Calculator FAQ

What is the P/S ratio?

P/S stands for price-to-sales ratio. It compares market capitalization with total revenue and is used as a valuation multiple.

What is the P/S formula?

P/S = Market capitalization / Total revenue. This calculator can also solve for market capitalization or total revenue.

When is P/S ratio useful?

P/S is useful when earnings are negative, unstable, or still developing. It is often used for growth companies where revenue is easier to compare than profit.

What is the limit of P/S ratio?

P/S says nothing directly about profitability. Two companies can have the same revenue multiple but very different margins, cash flow, and risk.

How should I interpret P/S ratio?

A higher P/S ratio usually means the market assigns a richer value to each unit of revenue, often because of expected growth or margin potential. It should always be checked together with gross margin, operating margin, and profit quality.


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