Price to sales ratio = Market price per share / Sales per share
PSR = Market Capitalization / Total sales
If a company has a market cap of $20 million and revenue of $10 million. Then, the P/S ratio = 20 million / 10 million = 2
A corporation with sales per share of $35 and a share price of $105 would have a P/S ratio of 3 (Calculation: 105 / 35 = 3). This means that investors pay $3 for every dollar of sales that the corporation generates.
Wayne Ltd has sales of $20 billion and the stock has a total market capitalization of $18 billion, then the Price to sales ratio for Wayne Ltd is: 18 billion / 20 billion = 0.9