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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.
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 three-tier system of alcohol distribution is the system for distributing alcoholic beverages set up in the United States after the repeal of Prohibition. [ 1] The three tiers are importers or producers; distributors; and retailers. The basic structure of the system is that producers can sell their products only to wholesale distributors who ...
v. t. e. Fundamental analysis, in accounting and finance, is the analysis of a business's financial statements (usually to analyze the business's assets, liabilities, and earnings ); health; [ 1] competitors and markets. It also considers the overall state of the economy and factors including interest rates, production, earnings, employment ...
Business valuation is a process and a set of procedures used to estimate the economic value of an owner's interest in a business. Here various valuation techniques are used by financial market participants to determine the price they are willing to pay or receive to effect a sale of the business. In addition to estimating the selling price of a ...
A good's price elasticity of demand ( , PED) is a measure of how sensitive the quantity demanded is to its price. When the price rises, quantity demanded falls for almost any good ( law of demand ), but it falls more for some than for others. The price elasticity gives the percentage change in quantity demanded when there is a one percent ...
The Dorfman–Steiner theorem (or Dorfman–Steiner condition) is a neoclassical economics theorem which looks for the optimal level of advertising that a firm should undertake. The theorem is named after Robert Dorfman and Peter O. Steiner who developed the approach in their widely cited 1954 article in the American Economic Review.
Pythagorean tuning is a system of musical tuning in which the frequency ratios of all intervals are based on the ratio 3:2. [ 2] This ratio, also known as the "pure" perfect fifth, is chosen because it is one of the most consonant and easiest to tune by ear and because of importance attributed to the integer 3.