You cannot afford to skip checking the price-to-sales ratio of your stocks if you do fundamental analysis.
Although I did not show the manual calculation of price-to-sales ratio of each of the 30 bluechips in this presentation, let me show you what formula.
Price-to-Sales = (total outstanding shares x last price) / 12 trailing months of sales
You can see the values of the variables in this formula on PSE Edge’s website at edge.pse.com.ph.
By the way, I did not compare the price-to-sales of the individual stocks to the price-to-sales of the sector where they belong. I suggest that you do the stock-to-sector price-to-sales comparison if you’d like to know if the stock is undervalued relative to the price-to-sales of its sector.
To reduce the amount of time that you need to spend in your research, I’ve already calculated the price-to-sales ratio of each of the 30 index stocks. Please share this article if you find this helpful.
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