Which of the following valuation measures is often used to compare firms that have no earnings?

Question

Quizplus · Accepted Answer

The price-to-sales ratio is often used to compare firms that have no earnings because it measures the company's stock price relative to its revenue. This valuation measure is useful for companies that are in the early stages of development or that are in industries where earnings may not be a good indicator of future performance.

Which of the Following Valuation Measures Is Often Used to Compare