Price to Sales Ratio Calculator

Formula

The formula to calculate the Price to Sales Ratio (P:S) is:

\[ \text{P:S} = \frac{\text{ASP}}{\text{TAS}} \]

Where:

Price to Sales Ratio (P:S): A financial ratio that compares the average share price to the total annual sales.
Average Share Price (ASP): The average price of a company's shares.
Total Annual Sales (TAS): The total sales revenue generated by a company in a year.

Let's say the average share price (ASP) is $50 and the total annual sales (TAS) is $200,000. Using the formula:

\[ \text{P:S} = \frac{50}{200000} = 0.00025 \]

So, the price to sales ratio is 0.00025.