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Price-to-sales ratio Empty Price-to-sales ratio

Mon Nov 21, 2022 9:15 am
The PS ratio is useful for growth stocks that aren't profitable or produce very unstable earnings. Again look at the historical averages they will guide you better and develop an understanding o the term in tangible form. In addition to that, you should factor in future expectations too.

Sales often vary due to market shifts or new products or services that may drive high-profit margins that may be even higher than the main product. This is very important to factor in when looking at stocks to buy.
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