Learn · Explainer
Price-to-sales ratio
Market value against revenue: the formula, when it's used, what it misses, and revenue per share for each company.
The short answer
The price-to-sales ratio compares a company's market value with its revenue: market cap divided by a year's revenue, or, the same thing per share, the share price divided by revenue per share. Ticker Sage doesn't publish prices, so the table gives revenue per share from each 10-K. Apple's fiscal 2026 revenue of $478.8B over 14.72B diluted shares is $32.53 per share.
The formulas
Price-to-sales = market cap ÷ annual revenue
= share price ÷ revenue per share
Revenue per share here uses the weighted average diluted share count from the income statement, the same one behind EPS. Using the cover-page count instead gives a slightly different figure. Whichever is used, the share price and the share count should refer to roughly the same time.
Why people use it
Revenue is positive for almost every company, even in years with losses, so a sales multiple exists where a P/E ratio doesn't. It's also harder to change with accounting choices than earnings are.
What it misses
- Profitability. A dollar of revenue at a company with a 40% margin and at one with a 2% margin show up the same way. Profit margins fill that gap.
- Debt. Market cap counts only shareholders' claims. Enterprise value divided by revenue includes debt as well.
- Industry. Grocers and software companies have very different margins, so their sales multiples aren't comparable.
A ratio describes how the market prices a company relative to one figure. It isn't a judgment on whether the price is right.
Revenue per share for every company
Revenue and weighted average diluted shares for the latest fiscal year, from each 10-K. Divide a share price by the last column to get a price-to-sales ratio. Banks are left out, since their revenue is defined differently.
Common questions
How do you calculate the price-to-sales ratio?
Divide market cap by the latest year's revenue, or divide the share price by revenue per share. Both give the same result if the share counts match.
Why use price-to-sales instead of P/E?
Revenue is positive even when a company has a loss, so the ratio exists when P/E doesn't, and revenue is less affected by accounting choices than earnings.
What does price-to-sales leave out?
Profit margins and debt. Two companies with the same revenue and price can have very different profits and balance sheets.
What is revenue per share?
Annual revenue divided by the number of shares. Apple's was $32.53 for fiscal 2026, using its weighted average diluted shares.
Does Ticker Sage publish price-to-sales ratios?
No. Ratios that need a live share price aren't published. The table gives revenue per share so a ratio can be worked out with any price.
See it side by side
The same figures for two companies at once, each linked to its 10-K:
Disclosures
- Editor holdings
- The editor holds shares of Tesla (TSLA) and SpaceX in a long-term retirement account. The editor holds no position in any other company named on this page. As of Nov 11, 2026.
- Compensation
- Nobody paid for this page. No affiliate links on this page.
- Sources
- Each company's own SEC filings, linked next to each number.
- Last updated
- Nov 9, 2026
General education, the same for every reader. Not a recommendation to buy, sell or hold any security, and it doesn't consider your situation.
More in Learn and Tools · Methodology & Disclosures explains where every number comes from.