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RATIOS & STATISTICS / VALUATION PROJ
Pr2SalesNTM
Full Description

Price to Sales is a valuation metric that divides the current market cap by the revenues for the period. The price-to-sales ratio is an indicator of the value placed on each dollar of a company's sales or revenues. A low value may indicate undervaluation and a high value overvaluation.

IMPORTANT: Quarterly values from Income & Cashflow statements are annualized to make the resulting factor more readily comparable with 12 month factors. The annualization is done by multiplying the quarterly figures by approximately 4 (depends on the actual number of days in the period).

Price to Sales Including Debt

This is a variation suggested by the Fool.com staff. It simply adds the Long Term Debt to the Market Cap. It's calculated as follows:

(MarketCap + DebtLT)/Sales

NOTE: Most Banks and Finance companies do not report revenues when they announce their preliminary quarterly financial results in the press. When this happens, the trailing twelve month values will not be available (NA) until the complete quarter is released.