How Do I Find A Sale/prices Ratio?

Price to sales ratio is defined as the capitalization of a stock divided by its sales over a period of 12 months. Because of the limitations, price to sales ratio are usually used only for unprofitable companies, since such companies don't have a price/earnings ratio. It is a financial concept. It is a ratio for valuing the stock relative to its own performance. It is also known as PSR.

Price/sales ratio is calculated as the ratio of the market value of equity to the sales. This ratio is generally inconsistent because the market value is divided with the total revenues of the firm. Thus the formula for finding out the price/sales = market value of equity/total revenues. This ratio varies with different industries and hence is good for comparing similar companies. But it is a limited method.