The price-sales method of valuing stock is popular for measuring stocks that cannot be valued by the P/E method.

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The price-sales method is often used to value stocks that don't have earnings and therefore cannot be valued using the P/E ratio. This method compares the stock's price to its sales or revenue per share, giving investors insight into how much they are paying for each dollar of sales.

The Price-Sales Method of Valuing Stock Is Popular for Measuring