What is a good market cap to sales ratio?

Price-to-sales (P/S) ratios between one and two are generally considered good, while a P/S ratio of less than one is considered excellent.

What is market cap ratio?

Market capitalization refers to the total dollar market value of a company’s outstanding shares. Colloquially called “market cap,” it is calculated by multiplying the total number of a company’s shares by the current market price of one share.

What is Amazon’s price to sales ratio?

PS Ratio Range, Past 5 Years

Minimum	2.669	Dec 31 2016
Maximum	5.559	Sep 02 2020
Average	3.830

What does a high price to sales ratio mean?

Price to sales ratio (PSR ratio) indicates how much investor paid for a share compared to the sales a company generated per share. A higher ratio means that the market is willing to pay for each dollar of annual sales. In general, the lower the P/S, the better the value is.

How do you calculate price to sales ratio?

The price-to-sales ratio (Price/Sales or P/S) is calculated by taking a company’s market capitalization (the number of outstanding shares multiplied by the share price) and divide it by the company’s total sales or revenue over the past 12 months. The lower the P/S ratio, the more attractive the investment.

What is market cap beginner?

Market capitalization is simply the value you get when you multiply all the outstanding shares of a stock by the price of a single share. Calculating the market cap is easy. For example, if a company has 1 million shares outstanding and its share price is $10, the market cap is $10 million.

Is market cap the same as sales?

Understanding the Difference Between Market Capitalization and Revenue? Market capitalization reflects the total value of a company based on its stock price. Revenue is the amount of money a company pulls in as a result of sales. It is possible for a company to have a large market cap but low revenues.