Price to Revenue (P/R)
Price to Revenue ratio or Price to Sales ratio (P/S ratio or PSR) is a valuation ratio that compares a company’s stock price with its revenues. The ratio is an indicator of the value placed on each riyal of a company’s sales or revenues. Like all ratios, the price-to-revenue ratio is most relevant when used to compare companies in the same sector. A low ratio in comparison with peer groups or benchmarks may indicate possible undervaluation, while a ratio that is significantly above the average may suggest overvaluation.
Calculated as: Last closing price ÷ latest trailing 4-quarter revenues per share.