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Investors are always seeking ways to compare the value of stocks.
In this article, we will walk you through one of the favorite ratios used by analysts in stock valuation so you understand what you are buying.
What is the price-to-sales ratio?
The price-to-sales ratio (or P/S) is calculated by taking a company's market capitalization and dividing it by the company's total revenue over the past 12 months.
Further reading:  What is a market capitalization (AKA market cap)? 
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