Rob’s Fundamental Stock Analysis

Rob’s Fundamental Stock Analysis

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Rob’s Fundamental Stock Analysis
Rob’s Fundamental Stock Analysis
Price to Sales

Price to Sales

Explained Part II

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Rob's Educated Guesses
Feb 27, 2021
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Rob’s Fundamental Stock Analysis
Rob’s Fundamental Stock Analysis
Price to Sales
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Price to sales explained. Part II

Ok, now that we have established how the market uses the P/E ratio, what is the purpose and history of price to sales?

So, believe it or not, stocks can trade at 1x sales.  Think low margin, high volume businesses like grocery stores.  If you think a company will have a consistent 5% operating margin and it is trading a…

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