What variables impact the Price/Sales ratio?
A) Sales growth rate, volatility of sales growth, profit margin
B) Earnings growth rate, volatility of sales growth, profit margin
C) Earnings growth rate, volatility of sales growth, operating margin
D) Sales growth rate, volatility of sales growth, operating margin
E) Sales growth rate, volatility of profit margin, profit margin

Question

Quizplus · Accepted Answer

The Price/Sales ratio is influenced by the sales growth rate, volatility of sales growth, and profit margin, as these factors directly affect the revenue and profitability expectations of a company.

What Variables Impact the Price/Sales Ratio