# Price to Revenue

## Definition

A valuation ratio that compares a companys stock price to its revenues. The price-to-revenue ratio is an indicator of the value placed on each dollar of a companys revenues. It can be calculated either by dividing the companys market capitalization by its total sales over a 12-month period, or on a per-share basis by dividing the stock price by sales per share for a 12-month period. Like all ratios, the price-to-sales ratio is most relevant when used to compare companies in the same sector. A low ratio may indicate possible undervaluation, while a ratio that is significantly above the average may suggest overvaluation.

## Formula

$\text{pricetorevenue =}\frac{\text{close_price}}{\text{totalrevenue}}{\text{weightedavedilutedsharesos}}}$

## Details

 Intrinio Tag pricetorevenue Statements Calculations Templates Industrial, Financial Type Valuation Units Multiple Historical? Yes Screenable? Yes

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