Source: https://mochatrade.com/learn/glossary/price-to-sales-ratio

# Price-to-sales ratio
URL: https://mochatrade.com/learn/glossary/price-to-sales-ratio
Last modified: 2026-10-17

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](https://mochatrade.com/learn/us-market-structure/us-earnings-explained) and [the discount rate](https://mochatrade.com/learn/us-market-structure/how-the-fed-moves-markets) decide.

## Related terms

- Revenue: https://mochatrade.com/learn/glossary/revenue
- P/E ratio: https://mochatrade.com/learn/glossary/p-e-ratio
- PEG ratio: https://mochatrade.com/learn/glossary/peg-ratio
- EBITDA: https://mochatrade.com/learn/glossary/ebitda
- Net interest income: https://mochatrade.com/learn/glossary/net-interest-income
- Dividend aristocrats: https://mochatrade.com/learn/glossary/dividend-aristocrats