RE:RE:Price to Sales Ratio (worth a look...)28. Bash other stocks that would-be investors can turn to instead of the one you’re pumping. quinlash - (4/17/2021 10:23:58 PM) RE:Price to Sales Ratio (worth a look...) poor old Canopy Growth haven't done as well, even on an adjusted basis, neither has Aurora... etc etc.. Norms and Limits
Price to sales ratio should be used with caution. It do not present the complete picture because it do not take into account the expenses and liabilities of a company. Besides, a lower price/sales ratio is not always a positive indicator because the company might be unprofitable with a lower price/sales ratio.
This ratio is usually calculated for the loss-making companies because price earning ratio (P/E Ratio) cannot be calculated for such companies.