There are many ways companies can manipulate their reported profits. Fudging sales (also known as revenue) is more difficult.

A price to Sales ratio of .5 means you're paying 50 cents for every $1 of sales the company makes. And paying less than a dollar for a dollar's worth of something is a good bargain.

A price to sales ratio of 2 means you're paying $2 for every $1 of sales the company makes. As you might have guessed, the lower the Price to Sales ratio, the better.

A stock's Price-to-Sales ratio reflects how much investors are paying for each dollar of revenues generated by the company. If the Price-to-Sales ratio is 1, it means that investors are paying $1 ...

Investing in stocks based on valuation metrics is a proven strategy for identifying opportunities with strong upside potential. While the price-to-earnings (P/E) ratio is a popular tool for gauging ...

The price-to-sales ratio is a convenient tool to gauge the value of stocks incurring losses or in an early development cycle. Stocks like JAKK, AGR, PCB, FIHL and GBX hold promise.