Enter the average share price ($) and the total annual sales ($) into the Price to Sales Ratio Calculator. The calculator will evaluate and display the Price to Sales Ratio.

## Price to Sales Ratio Formula

The following formula is used to calculate the Price to Sales Ratio.

P-S = ASP / TAS

• Where P-S is the Price to Sales Ratio ($/$)
• ASP is the average share price ($) • TAS is the total annual sales ($)

## How to Calculate Price to Sales Ratio?

The following example problems outline how to calculate Price to Sales Ratio.

Example Problem #1:

1. First, determine the average share price ($). 1. The average share price ($) is given as: 50.
2. Next, determine the total annual sales ($). 1. The total annual sales ($) is provided as: 4,000,000.
3. Finally, calculate the Price to Sales Ratio using the equation above:

P-S = ASP / TAS

The values given above are inserted into the equation below:

P-S = 50 / 4,000,000 = .0000125 ($/$)

Example Problem #2:

For this problem, the variables needed are provided below:

average share price ($) = 10 total annual sales ($) = 100000

This example problem is a test of your knowledge on the subject. Use the calculator above to check your answer.

P-S = ASP / TAS = ?