Price-to-sales ratio (P/S)

Market value divided by yearly revenue.

P/S = market cap ÷ revenue over the last twelve months

Price to sales is used where earnings are small or negative, for young or cyclical companies. It tells you how much the market pays for each dollar of revenue.

A P/S only makes sense next to margins: a company with a 40% net margin on a P/S of 8 trades at 20 times earnings; one with a 5% margin on the same P/S trades at 160 times.

Price to sales across the S&P 500 today

496 companies with a meaningful value, as of Oct 11, 2026.

Median3.16x
Lower quartile1.70x
Upper quartile6.22x

Highest in the S&P 500

Extra Space Storage Inc EXR216.7x
Crown Castle CCI165.6x
SBA Communications Corp SBAC84.9x
Palantir Technologies Inc. PLTR78.6x
Moderna Inc MRNA36.3x
Palo Alto Networks Inc PANW31.2x
Bloom Energy Corp BE31.0x
Texas Pacific Land Corporation TPL27.7x
Marvell Technology Group Ltd MRVL27.3x
Datadog Inc DDOG26.7x

Lowest in the S&P 500

Centene Corp CNC0.18x
Cencora Inc. COR0.19x
Cardinal Health Inc CAH0.23x
Bunge Limited BG0.24x
Ford Motor Company F0.25x
Cigna Corp CI0.25x
Charter Communications Inc CHTR0.26x
CVS Health Corp CVS0.26x
Kroger Company KR0.27x
McKesson Corporation MCK0.28x

Median price to sales by sector

S&P 500 companies only. Sectors differ a lot, so compare a company with its own sector first.

SectorMedianCompanies
Real Estate8.42x25
Technology6.03x85
Healthcare3.54x57
Industrials3.36x74
Basic Materials3.26x15
Financial Services3.21x69
Utilities2.87x31
Energy2.08x21
Consumer Cyclical1.92x52
Consumer Defensive1.89x30
Communication Services1.80x20

Questions

What is Price to sales?

Market value divided by yearly revenue.

How is Price to sales calculated?

P/S = market cap ÷ revenue over the last twelve months.

What is a normal price to sales?

Across 496 S&P 500 companies, the median is 3.16x; the middle half sits between 1.70x and 6.22x. It varies a lot by sector.

Related terms

P/E ratioHow many dollars investors pay for each dollar of a company's yearly profit.Forward P/EThe P/E ratio using next year's expected earnings instead of last year's.Price to free cash flowMarket value divided by the cash the business generated after investing in itself.Free cash flow yieldThe cash a business produced last year as a percentage of what the stock market values it at.Earnings yieldThe inverse of the P/E ratio: yearly profit as a percentage of the share price.EV/EBITDAThe whole business's value, debt included, divided by its operating earnings before non-cash charges.Price to bookMarket value divided by the accounting value of what shareholders own.

Live figures from the latest prices and SEC filings. Information only, not investment advice. Updated October 9, 2026.