P/S Ratio Calculator with Live Sector Benchmarks
Compute the price-to-sales ratio in seconds and place it against live sector medians, ideal for companies without profits. Free, with formula and example.
Today’s focus
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Inputs
Market capitalization
Also called: Market cap, MVE (market value of equity)
Where to find it: Shown prominently on any stock overview page.
How to derive: Share price × shares outstanding.
Revenue
Also called: Sales, turnover, top line
Where to find it: Income statement, very first line.
How to derive: Units sold × price; stated directly in the income statement.
Margin
Also called: Profit margin (gross/net)
Where to find it: Income statement: respective profit ÷ revenue.
How to derive: Gross margin = gross profit ÷ revenue; net margin = net income ÷ revenue.
Result, live
P/S only means something with margin context: P/S 2 at a 20% margin = P/E 10; at a 2% margin = P/E 100.
The price-to-sales ratio (P/S) compares the market value of a company to its annual revenue — the one multiple that still works when profits are thin or negative. This calculator divides market cap by sales in seconds and, if you add a net margin, shows the P/E those sales would imply.
How the formula works
Divide the whole market capitalization by yearly revenue and you get the P/S ratio. Because it ignores costs, a thin margin needs a low P/S to be cheap — so the calculator also turns sales into an implied P/E using the margin you enter.
Implied P/E = market cap ÷ (revenue × net margin)
Example: A company worth $5,000m earns $2,500m in revenue at an 8% net margin. P/S = 5,000 ÷ 2,500 = 2.0. The same sales imply a P/E of 25 — average revenue value, but a rich earnings multiple because the margin is thin.
How to read the result
- Below 1.5 — cheap relative to revenue, especially if margins are healthy.
- 1.5 to 4 — the average range for most companies.
- Above 4 — a rich revenue multiple; only fast growth or fat margins justify it.
What to watch out for
- Margins decide everything. P/S 2 at a 20% margin is a P/E of 10; at a 2% margin it is a P/E of 100.
- Revenue is not profit. Growing sales that never turn into cash can still destroy value.
- Compare within a sector. Software carries far higher P/S than retail.
P/S ratio by sector
A P/S ratio only means something next to the company's own sector: high-margin software trades at a multiple of sales, thin-margin retail far below it. The table shows median and range for every sector from our database, updated daily.
| Sector | Lower quartile | Median | Upper quartile | Stocks |
|---|---|---|---|---|
| Consumer Staples | 0.29 | 0.71 | 1.72 | 1,560 |
| Consumer Discretionary | 0.28 | 0.76 | 1.82 | 3,298 |
| Communication Services | 0.36 | 0.94 | 2.36 | 975 |
| Industrials | 0.40 | 1.08 | 2.76 | 4,831 |
| Materials | 0.40 | 1.09 | 2.97 | 2,796 |
| Energy | 0.49 | 1.34 | 2.77 | 841 |
| Utilities | 0.67 | 1.60 | 3.27 | 624 |
| Information Technology | 0.52 | 1.68 | 4.42 | 3,184 |
| Real Estate | 0.50 | 1.98 | 5.46 | 1,635 |
| Health Care | 0.73 | 2.09 | 4.93 | 2,099 |
| Financials | 1.31 | 2.85 | 4.78 | 2,885 |
Source: the Fair Value Calculator database, 24,728 stocks with a valid value for P/S ratio, as of Sep 25, 2026. Median: half of the sector's stocks sit below it. Lower and upper quartile: 25 % sit below or above. Values move daily with prices. All valuation ratios by sector →
P/S ratio by industry and sector: all industries, quartiles, CSV →