Categories: Formula

ps Ratio Formula: Understand Forex Trading Better

The Price/Sales (P/S) Ratio is a commonly used formula for evaluating the financial health of a company in the Forex market. It reflects the amount of revenue generated for a company in relation to its share price. The P/S Ratio provides a comparison of the current stock price to the company’s past performance by taking into account the company’s total sales over a given time frame. This indicates how much money is generated per share of stock. A higher P/S ratio suggests potential for growth, and a lower ratio may be an indication of a company’s weak fundamentals.

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