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eugene wants to purchase a growth stock for his portfolio and has been comparing a number of companies in the biotech industry. one company has a current market price per share of $25 and sales per share of $1.25. calculate the company's price-to-sales (p/s) ratio.

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One business generates $1.25 in sales per share and has a per-share market price of $25. The price-to-sales (p/s) ratio for the company is 20.

What is the ratio of price to sales?

The P/S ratio is a measure of investment valuation that compares a company's market valuation to its 12-month sales. By stating how much capital is needed to generate $1 in revenue, it assesses the resources and capital can produce are receiving from the a company's stock.

Why Do Investors Need to Know About the Price-to-Sales (P/S) Ratio?

For investors and analysts, the P/S ratio, commonly referred to as a sales several or revenue many, is a crucial research and valuation tool. The ratio displays the amount of money shareholders are willing to put up for every dollar of sales.

Briefing:

MVS=Market Value per Share=$25

SPS=Sales per Share=$1.25

P/S Ratio= MVS/SPS

=$25/$1.25

=20

To know more about Price-to-sales ratio visit:

https://brainly.com/question/14856408

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