P/S ratio (KUV)
A ratio that compares a company's stock market value with its annual revenue.
In short
As of 8 October 2026The P/S ratio (price-to-sales, German KUV) divides a company's market value by its annual revenue. A P/S of 5 means investors pay five euros for every euro of sales. It is useful for companies without profits, but says nothing about margins. That is why P/S ratios should only be compared within the same industry.
The price-to-sales ratio (German: KUV) divides market capitalization by one year's revenue. It shows how many euros of market value sit on each euro of sales.
The P/S ratio is popular for young growth stocks that are not yet profitable, so no P/E ratio can be calculated. The catch: revenue is not profit. A retailer with thin margins almost always has a low P/S, a high-margin software firm a high one. Comparisons only make sense within one industry.
Example: a company is worth 50 billion euros on the stock market and has annual revenue of 10 billion euros. Its P/S ratio is 5. For a supermarket chain that would be extremely high; for a fast-growing software company it is not unusual.
As of 8 October 2026 · Educational content, not investment or tax advice.