Forward PS Ratio

Forward Price to Sales Ratio is the current stock price over the predicted sales per share. While similar to the price to sales ratio, this is a forward looking estimate of a company's sales.

A forward P/S ratio that is higher than the current P/S ratio means that that sales are expected to decrease at the next period. If you think of P/S Ratio as "how much am I paying for each dollar of sales?" a forward P/S ratio can be thought of as "is my current P/S Ratio justified if sales will change drastically?"

Let's say you purchase a company with a P/S Ratio of 10. Intuitively, this means that for each dollar of sales, you're paying ten dollars for that stake. If the Forward P/S Ratio is 15, this could mean that sales are expected to significantly drop and you could be hypothetically paying 15 dollars per dollar of shares instead of 10.

Formula

Forward Price to Sales is calculated as the current stock price over the expected sales per share of the next period.

If a stock is 600 dollars, the last reporting period's sales per share was 50, and the forward estimate sales was 100, the forward P/S would be 6 (600/100). While the forward PS ratio would be 12. (600/50).

Note : We do not display negative PS ratios.