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Price-to-Sales Ratio
Glossary

Price-to-Sales Ratio

Imagine you're at a fancy art auction, and you spot a striking painting that catches your eye. Before you raise that paddle, wouldn't you want to know how the artwork's price compares to similar pieces? That's essentially what the price-to-sales ratio does for stocks - it gives you a glimpse into whether a company's shares are a bargain or a rip-off.