Interested in learning about the price-to-sales ratio?
想了解股價營收比嗎？
00:03
It's a common valuation metric that helps you understand how much you're paying for the stock, relative to the amount of revenue that that company generates.
這是一種常見的估值指標，能幫助你了解相對於公司創造的營收，你買進這檔股票的價格是否合理。
00:10
Hey, welcome to Rhinance, the channel centered around your financial education to help make you a better investor. Be sure to subscribe to the channel as I upload new educational stock market videos every week. The price-to-sales ratio is a valuation metric that compares the stock's current
price to their sales numbers. The calculation for this ratio can be found by dividing the stock's market cap by their yearly revenue. It tells you how much you are paying in stock price for each dollar of revenue the company generates. Investors use price-to-sales to judge if the company is over or undervalued relative to that company's peers. This ratio can be especially
useful when attempting to value a stock that is not currently profitable or only slightly profitable as you only need to look at their current revenue amounts. Some investors even prefer price-to-sales over other valuation ratios like the PE ratio. The price-to-earnings ratio relies on
the company to be profitable, which may not always be the case and is commonly criticized in that the profit figure can be easily manipulated through accounting techniques. Thus, price-to-sales can offer a different valuation perspective as revenues are typically more stable year-to-year, they cannot be easily manipulated, and every company will have a revenue figure.
If you'd like to learn more about PE ratio, you can click the link here to my full-length video that covers it in detail. For price-to-sales, there are two different ways you can calculate it, either on a market cap basis or on a per-share basis. The first method, market cap basis,
is to divide the stock's market cap by its yearly revenue, also known as sales.
第一種方法，基於市值計算，
01:40
For the revenue or sales figure, you can find it in the income statement of the company's most recent earnings report. It should be noted that you want to make sure this is a yearly figure and not just a quarterly figure. The other method is to calculate the ratio on a per-share basis.
For this, you need to divide the stock's price per share by their yearly revenue per share.
為此，你需要將股票的每股價格除以其每股年度營收。
02:00
You would need to find the revenue in the income statement as well, and then divide that by the number of shares outstanding to arrive at revenue per share.
你也需要在損益表中找到營收，然後將其除以流通在外股數，得出每股營收。
02:08
Both ways will arrive at the same conclusion, but I would recommend to use the first approach as it requires less work, so there's less room for error. For the price-to-sales ratio, you'll get a multiple, in which lower is better and higher is worse.
So if we have company A with a price-to-sales multiple of five times and company B with a price-to-sales multiple of two times, this ratio implies that these shares of company B are of better value. Simply put, for each dollar you'd have to spend a share price, Company B offers you
所以，如果公司 A 的股價營收倍數為 5 倍，而公司 B 的股價營收倍數為 2 倍，這個比率意味著公司 B 的股票價值更高。簡單來說，對於你每股所支付的每一美元，公司 B 在其創造的營收金額上提供了
02:37
more value in the amount of revenue that they make. As with most valuation ratios, there are two different timeframes you can look at, trailing and forward.
更多的價值。與大多數估值比率一樣，你可以觀察兩種不同的時間範圍：過去和未來。
02:46
The trailing price-to-sales ratio would rely on financial information that has already been reported and is using data from the last one year of operations. This is usually written like this, in which the TTM part means trailing 12 months. A forward price-to-sales ratio is referencing
analyst's expectations for the coming year. Keep in mind that this is just an estimate, as nobody can predict the future, but it can be used as a guide for what to expect.
分析師對來年的預期。請記住，這只是一個估計值，因為沒有人能預測未來，但它可以作為預期的參考指南。
03:12
So let's look at a quick example of why this may be relevant. We have a hypothetical company here, Riley's Robotics, that has a market cap of $10 billion in trailing 12-month sales of $2.5 billion. If we calculate the price-to-sales ratio on a TTM basis, we would see that Riley's robotics
has a price-to-sales ratio of five times. This sounds rather expensive and may suggest the company is overvalued. Now let's say that Riley's Robotics is projected to have a blowout year and is expected to double their sales to $5 billion over the next year. Now that we know this, we can
calculate the forward ratio and find their price-to-sales to be two times now. When we look at it this way, Riley's Robotics doesn't look nearly as overvalued and this may be a good time to buy into the stock.
It would appear, however, that the market has already accounted for this and the stock price has moved up to reflect the expected revenue growth. For this reason, it's important to look at both the trailing and forward price-to-sales ratios to get a better understanding of how the market is currently pricing the stock. Before I close out the video here, I would like to mention
some of the limitations when using price-to-sales ratio. First off, the ratio does not account for profit margins within the business. Imagine a business is growing its revenues aggressively and currently has a favorable price-to-sales ratio. You may think this is good, but if the profit
margin for the business is very low, not much of that revenue is being translated into profits.
這點必須牢記，因為企業是靠利潤運營的，而不僅僅是銷售額。
04:39
This is something to keep in mind as businesses run on profits, not just sales alone. Additionally, the price-to-sales ratio does not take capital structure or debt into account whatsoever. With debt, investors typically prefer businesses with low debt loads. If we have two companies,
with identical market caps and revenue numbers, their price-to-sales ratios will be the same.
它們的市值和營收數字完全相同，那麼它們的市銷率也會一樣。
05:00
Let's say one of these companies is highly indebted and the other is not.
假設其中一家公司負債累累，而另一家則沒有。
05:04
The company with less debt will be more resilient and possibly a better investment, but price-to-sales ratio does not capture this at all. Remember to take a holistic approach when attempting to value companies and when using financial ratios. Each ratio will tell you something different and price-to-sales should be used in conjunction with other ratios in
metrics like PE and dividends to get a solid understanding of the company's financial standing.
才能對公司的財務狀況有更穩固的了解。
05:28
Thanks for watching today. How do you use price-to-sales ratio in your stock valuations?
感謝今天的收看。你如何在股票估值中使用市銷率？
05:33
Let me know your process in the comments below. You can check out the playlist on screen now to learn about more financial ratios. If you learned something new, give the video a thumbs up!
6IntheRiley'sRoboticsexample, whydidtheP/Sratiodropfrom 5 to 2?在Riley's Robotics的例子中，為何P/S比從5降到2？IntheRiley'sRoboticsexample, whydidtheP/Sratiodropfrom 5 to 2?
