A financial ratio in which the stock price is divided by the sales revenue per share. Specifically:
![Price-To-Sales Ratio](https://fincyclopedia.net/wp-content/uploads/2022/02/price-to-sales-ratio.gif)
A high price-to-sales ratio may indicate that investors are expecting a rise in profit margins of a company. This ratio can also be constructed using the P/E ratio as follows:
Price-to-sales ratio = P/E ratio x earnings-to-sales
![Price-To-Sales Ratio](https://fincyclopedia.net/wp-content/uploads/2022/02/price-to-sales-ratio2.gif)
where: EPS denotes earnings per share.
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