<P> Price--sales ratio, P / S ratio, or PSR, is a valuation metric for stocks . It is calculated by dividing the company's market cap by the revenue in the most recent year; or, equivalently, divide the per - share stock price by the per - share revenue . Also, justified p / s is calculated as (profit margin × payout × (1 + g) / (r − g)). </P> <P> Unless otherwise stated, P / S is "trailing twelve months" (TTM), the reported sales for the four previous quarters, although of course longer time periods can be examined . </P>

What is p s ratio in stock market