# Price to Sales Ratio Calculator (P/S)

URL: https://speedycalculator.com/calculators/finance/price-to-sales/
Last updated: 2026-10-25

> The price to sales ratio calculator works out sales per share and the P/S ratio – how much investors pay for each dollar of a company's revenue – useful for valuing companies that aren't yet profitable.

## Inputs

- Sales (revenue)
- Shares outstanding
- Price per share

## Results

- Sales per share
- Price to sales ratio

## Formula

```
Sales per share = revenue ÷ shares outstanding
P/S = share price ÷ sales per share = market cap ÷ revenue
```

## Explanation

A low P/S ratio can point to an undervalued stock, but compare within an industry: software companies with 80% margins deserve higher P/S ratios than grocers with 3% margins.

### How to use the Price to Sales Ratio Calculator

- **Sales (revenue)**
- **Shares outstanding**
- **Price per share**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter annual sales, shares outstanding and the share price.

### Tips

- Take figures from the same financial statements and the same fiscal year.
- Compare ratios with companies in the same industry, not across industries.
- Use several valuation measures together; no single ratio tells the whole story.
- Market prices change every second – refresh the share price before you rely on a result.

### Common mistakes to avoid

- Mixing per-share figures with company totals.
- Using trailing earnings for one company and forward earnings for another.
- Forgetting dilution from options and convertible securities.

### Inputs explained

FieldWhat to enterSales (revenue)Amount in your currencyShares outstandingA numberPrice per shareAmount in your currency

### What each result means

- **Sales per share** = [Sales (revenue)]÷[Shares outstanding]
- **Price to sales ratio** = [Price per share]÷[Sales per share]

### Example values

How the main result changes when **Sales** changes and everything else stays at the example values above:

Sales (revenue)Price to sales ratio1,000,000,0004.51,500,000,00032,000,000,0002.252,500,000,0001.83,000,000,0001.54,000,000,0001.13

## Worked example

Inputs — Sales (revenue): $2,000,000,000; Shares outstanding: 100,000,000; Price per share: $45.

Results — Sales per share = $20.00; **Price to sales ratio = 2.25**.

## FAQ

**What is a good P/S ratio?**
Between 1 and 2 is often considered reasonable; it varies by industry.

**Why use P/S?**
It works even for companies without profits.

**What is the weakness of P/S?**
It ignores profitability and debt.

**What formula does the Price to Sales Ratio Calculator use?**
Sales per share = revenue ÷ shares outstanding.


## Sources

- [Corporate Finance Institute – financial ratios](https://corporatefinanceinstitute.com/)