How this calculator works
Compare a common share price with annual sales revenue allocated per share. Enter company totals to calculate the per-share amount, or solve directly for the multiple, price or per-share figure. Use matching share counts and accounting periods. A positive sales revenue denominator is required for a meaningful positive multiple.
Formula
Price to sales ratio = price per share / sales revenue per share. Per-share amount = total sales revenue / outstanding common shares.
Worked example
$1,000,000 in the selected annual measure over 100,000 shares gives $10 per share. At a $30 price the multiple is 3. A $20 price and $5 per share give a multiple of 4.
Advertisement
Frequently asked questions
Can I use quarterly figures?
Use trailing twelve-month or annualized sales revenue for annual comparisons, and label any annualization assumption.
Is this an enterprise value multiple?
No. Price-based ratios use common equity value. Enterprise value includes debt and other financing claims and deducts cash.
What does a low result mean?
It means a lower price relative to the selected sales revenue measure, but does not by itself establish fair value. Compare margins, investment needs and risk.