P/S ratio formula is used to compare companies growth. Price to sales ratio formula is expressed as Share Price / Sales per Share. The Price-to-Sales ratio is also referred to as, PSR, "sales multiple" or "revenue multiple". This ratio is calculated by dividing stock price by sales per share. The 12-month period used for sales is generally the current fiscal year. A price-to-sales ratio that is based on forecast sales for the current year is called a forward ratio.
The price to sales ratio formula helps you compare companies performance of the same sector. The P/S ratio formula is the perceived value of a stock by the market compared to the revenues of the company.