What variables impact the Price/Sales ratio?

Name: What variables impact the Price/Sales ratio?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The Price/Sales ratio is directly influenced by the sales growth rate, volatility of sales growth, and profit margin. These factors affect a company's valuation relative to its sales, where sales growth rate indicates the company's growth potential, volatility of sales growth impacts the predictability of future sales, and profit margin reflects the company's efficiency in converting sales into profits.

What Variables Impact the Price/Sales Ratio