Price to sales

Part I

The origins of the price to sales ratio according to Rob’s Educated Guesses

We started in equity research in 1991 right out of college.  At the time, we knew almost nothing about how to value a security.  We would like to share our “aha” moment on valuations succinctly and concisely, the less blather the better!  Here goes!

Historically, the price-to-earn…