Price-to-sales ratio
The price-to-sales ratio is market value divided by annual revenue, used for companies with no profit yet, where P/E means nothing. Ten means you pay ten years of today's revenue. It assumes revenue turns into profit one day, which the guide and the discount rate decide.
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In MochaLearnLearn how to read US earningsRelated terms
- RevenueRevenue is the total money a company takes in from sales before any costs, the top line. Growth companies are judged…
- P/E ratioThe P/E ratio is share price divided by the last twelve months of earnings per share; 25 means $25 for each dollar of…
- PEG ratioThe PEG ratio is P/E divided by expected annual earnings growth in percent, so a P/E of 30 with 30% growth gives a PEG…
- EBITDAEBITDA is earnings before interest, taxes, depreciation and amortisation: operating profit with debt costs and…
- Net interest incomeNet interest income is what a bank earns on the gap between what it pays depositors and what it charges borrowers.…
- Dividend aristocratsDividend aristocrats are S&P 500 companies that have raised their dividend every year for at least twenty five years…