Islamic Finance
Arkan Aqd al-Bay’
February 28, 2022
Islamic Finance
Murabaha lil Amer bil Shira
February 28, 2022

A financial ratio in which the stock price is divided by the sales revenue per share. Specifically:

Price-To-Sales Ratio

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

where: EPS denotes earnings per share.

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