What is a good price-to-sales ratio for a stock?

Price-to-sales (P/S) ratios between one and two are generally considered good, while a P/S ratio of less than one is considered excellent. As with all equity valuation metrics, P/S ratios can vary significantly between industries.

What is Tesla’s price-to-sales ratio?

PS Ratio Range, Past 5 Years

Minimum 1.373 Jun 03 2019
Maximum 30.03 Jan 26 2021
Average 7.818

What is the average price-to-sales ratio?

The average price-to-sales ratio (P/S ratio) of the S&P 500 is 1.55 for the period from January 2001 to June 2020. During this period, the P/S ratio has ranged between a bottom of 0.80 in March 2009 and a peak of 2.28 in December 2019.

Is a higher price-to-sales ratio better?

The ratio describes how much someone must pay to buy one share of a company relative to how much that share generates in revenue for the company. Generally speaking, the lower the P/S ratio is, the better.

Is Tesla stock overvalued?

Tesla’s stock is overvalued and worth only $150, according to Craig Irwin, senior research analyst at Roth Capital, who said the electric carmaker must do more to justify its share price of nearly $700. Tesla on Friday reported that it delivered 184,800 vehicles and produced 180,338 cars in the first quarter of 2021.

What is Amazon’s price-to-sales ratio?

PS Ratio Range, Past 5 Years

Minimum 2.669 Dec 31 2016
Maximum 5.559 Sep 02 2020
Average 3.796

What is a high price-to-sales?

From an investment perspective, a low price-to-sales ratio (1.0 or less) may indicate a good buy with a stock price that is undervalued. Higher price-to-sales (P/S) ratios, such as 2.0 to 3.0, display a strong market price and perhaps an equally strong company.

How do you interpret price-to-sales ratio?

The price-to-sales ratio (Price/Sales or P/S) is calculated by taking a company’s market capitalization (the number of outstanding shares multiplied by the share price) and divide it by the company’s total sales or revenue over the past 12 months.

What is the average price to sales ratio?

How do you interpret price/sales ratio?

Price to sales ratio (PSR ratio) indicates how much investor paid for a share compared to the sales a company generated per share. It measures the value placed on sales by the market. A higher ratio means that the market is willing to pay for each dollar of annual sales.

Why is Tesla stock price so high?

Tesla’s stock has surged more than 20,000% since it went public in 2010. The searing rally has been driven by production growth, EV frenzy, and frontman Elon Musk. But many Wall Street analysts say Tesla’s bloated stock price is a bubble that’s bound to pop.

What stocks are undervalued right now?

Undervalued Growth Stocks

Symbol Name Price (Intraday)
KGC Kinross Gold Corporation 5.32
HPE Hewlett Packard Enterprise Company 14.62
HPQ HP Inc. 28.07
VIAC ViacomCBS Inc. 39.90

How to calculate market value per share?

– Book value per share. Take the stockholder’s equity, the value of company assets less company debts. – Dividend yield is the ratio of dividends to stock price. Divide the annual dividends issued per share by the share price to get dividend yield. – Earnings per share. – Price/earnings ratio. – Market value per share.

What is the formula for sales per share?

Because the number of shares outstanding can fluctuate, a weighted average is typically used. The formula for sales per share is: Sales Per Share = (Sales- Discounts and Returns)/Shares Outstanding.

What is a good price ratio?

The price-to-book (P/B) ratio has been favored by value investors for decades and is widely used by market analysts. Traditionally, any value under 1.0 is considered a good P/B value, indicating a potentially undervalued stock.

What is a good P’s ratio?

What is a Good P/S ratio? A low price-to-sales ratio , typically less than 1.0, is considered a good value as that means an investor is paying less for each sale. The lower the P/S ratio, the better the value since the investor is paying less for each unit of sales.