Sometimes called the 'king of ratios', the price-to-sales ratio is one of the most useful ways to tell if a share is cheap or expensive, and is a good predictor of future share-price performance. Tim Bennett explains what it is, how you calculate it, and when you should use it - and points out some of its downsides.
Related videos
A beginner's guide to the price/earnings (p/e) ratio
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
What does a PEG ratio tell you?
See also MoneyWeek's Financial glossary.
-
Treasury Committee launches review of Lifetime ISA – is it fit for purpose?Nine years after it was created, is the Lifetime ISA fit for purpose? The Treasury Committee is gathering views from consumers and the financial services industry
-
My Chase boosted rate ends this month – where should I put my money?Chase has offered a series of temporary bonus deals on its popular savings account in recent months, typically boosting your rate for around six months. However, those who signed up in the summer are coming to the end of the deal.
