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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I am Jaycee De Guzman, founder and Chief Executive Officer of Equilyst Analytics, Inc. My mission is to simplify stock trading and investing in the Philippine Stock Exchange using my proprietary evergreen strategy in stock trading and investing. My vision is to level up at least 1,000,000 Filipino stock traders and investors by 2030. I will make it happen.