Price to Sales Ratio: An Analysis of Forex Trading
Price to sales ratio forex is a common measure of a security’s valuation. It is calculated by taking the security’s current market price divided by its revenue per share (or sales per share). This ratio can be used to gauge a security’s potential for further appreciation or depreciation, as well as compare similar stocks in the same sector. In general, the higher the ratio, the more expensive the security is in relation to its sales. In contrast, a lower ratio might indicate potential for an increase in price as the underlying sales increase. Investors should use price to sales ratio forex in combination with other fundamental factors when making investment decisions.
