P/S — price to sales

What it measures¶

P/S is the price investors pay for each unit of a company's yearly revenue (its sales). It is the market capitalisation (share price × number of shares) divided by revenue. A P/S of 2 means investors pay twice one year's sales.

Why it is on the page¶

Revenue is positive even when a company makes a loss, so P/S still has a value when P/E has none — useful for young or struggling companies. Its weakness is the reverse: it ignores profitability entirely, so a company with thin margins and one with fat margins can share a P/S while being worth very different amounts per unit of sales.

Thresholds, their source and the population they were fitted on¶

The Fundamentals page shows P/S without zones: no published line applies across industries, because margins differ so much between them (a grocer keeps a few cents of each unit of sales, a software company a large part).

• Fitted on: no population — a descriptive ratio.
• Evidence grade: not graded; P/S is a description, not a test.

A worked example¶

Celestica, as the Fundamentals page showed it on 9 August 2026: a P/S of 3.65 — investors paid a little under four times a year's sales. With a net margin of 6.72%, that is the same as paying about 54 times profit, which is the P/E the page showed beside it.

What “No verdict” means here¶

P/S never carries a verdict word: it is a valuation multiple, and valuation is described, never scored. The row reads insufficient data when revenue or the market capitalisation is not stored.

What the verdict is and is not¶

The figure describes what investors pay for a unit of sales. It is not a judgement of whether that is too much or too little, not a forecast, and not an instruction to trade the shares.