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Business Calculators

Price to Sales (P/S) Ratio Calculator

Verified formula Updated Jun 2026 Private — runs on your device

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Verified formula Private

Price to sales ratio

4.00

For general information only — not financial, tax, legal or medical advice. Verify before you rely on it.

How to use the Price to Sales (P/S) Ratio Calculator

The Price to Sales (P/S) Ratio Calculator works out your price to sales ratio in an instant. Enter market capitalisation and annual revenue and the result updates as you type — it is free, needs no sign-up, and runs entirely in your browser so your figures stay private.

  1. Enter the market capitalisation.
  2. Enter the annual revenue.
  3. Read off your price to sales ratio — the calculator updates automatically, with no button to press.

Formula

The Price to Sales (P/S) Ratio Calculator uses the formula:

Price to sales ratio = Market capitalisation ÷ Annual revenue

Worked example

For example, with market capitalisation of 1,000,000 and annual revenue of 250,000, the price to sales ratio is 4.00.

Inputs used
Market capitalisation 1,000,000
Annual revenue 250,000
Results
Price to sales ratio 4.00

Results are estimates for educational use, not professional advice.

Key terms explained

Ratio
A comparison of two quantities showing how many times one contains the other.

Frequently asked questions

It is market capitalisation divided by annual revenue, showing how much investors pay for each unit of sales.

P/S works even when a company has no earnings, making it useful for young or unprofitable firms.

It varies by industry. Lower can mean better value, but high-growth firms often command higher ratios.

It ignores profitability and debt. A low ratio with thin margins may not be the bargain it appears.

The Price to Sales (P/S) Ratio Calculator uses the formula: Price to sales ratio = Market capitalisation ÷ Annual revenue. For example, with market capitalisation of 1,000,000 and annual revenue of 250,000, the price to sales ratio is 4.00.

Enter the market capitalisation. Enter the annual revenue. Read off your price to sales ratio — the calculator updates automatically, with no button to press.

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