Ads
related to: price/sales ratio explained graph chart maker free
Search results
Results From The WOW.Com Content Network
Price–sales ratio, P/S ratio, or PSR, is a valuation metric for stocks. It is calculated by dividing the company's market capitalization by the revenue in the most recent year; or, equivalently, divide the per-share price by the per-share revenue. The justified P/S ratio is calculated as the price-to-sales ratio based on the Gordon Growth Model.
Total revenue = sales price × number of unit. These are linear because of the assumptions of constant costs and prices, and there is no distinction between units produced and units sold, as these are assumed to be equal. Note that when such a chart is drawn, the linear CVP model is assumed, often implicitly. In symbols:
The Buffett indicator (or the Buffett metric, or the Market capitalization-to-GDP ratio) [ 1] is a valuation multiple used to assess how expensive or cheap the aggregate stock market is at a given point in time. [ 1][ 2] It was proposed as a metric by investor Warren Buffett in 2001, who called it "probably the best single measure of where ...
Marginal revenue is the concept of a firm sacrificing the opportunity to sell the current output at a certain price, in order to sell a higher quantity at a reduced price. [ 8] Profit maximization occurs at the point where marginal revenue (MR) equals marginal cost (MC). If then a profit-maximizing firm will increase output to generate more ...
Profit margin is a financial ratio that measures the percentage of profit earned by a company in relation to its revenue. Expressed as a percentage, it indicates how much profit the company makes for every dollar of revenue generated. Profit margin is important because this percentage provides a comprehensive picture of the operating efficiency ...
Price–performance ratio. In economics, engineering, business management and marketing the price–performance ratio is often written as cost–performance, cost–benefit or capability/price ( C/P ), refers to a product's ability to deliver performance, of any sort, for its price. Generally speaking, products with a lower price/performance ...
The price-to-book ratio (P/B) is a commonly used benchmark comparing market value to the accounting book value of the firm's assets. The price/sales ratio and EV/sales ratios measure value relative to sales. These multiples must be used with caution as both sales and book values are less likely to be value drivers than earnings.
The price/cash flow ratio (also called price-to-cash flow ratio or P/CF), is a ratio used to compare a company's market value to its cash flow.It is calculated by dividing the company's market cap by the company's operating cash flow in the most recent fiscal year (or the most recent four fiscal quarters); or, equivalently, divide the per-share stock price by the per-share operating cash flow.
Ads
related to: price/sales ratio explained graph chart maker free