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Eicher Motors Price/Sales

What is the Price/Sales of Eicher Motors?

The Price/Sales of Eicher Motors Limited is 7.33

What is the definition of Price/Sales?



Price to sales ratio is a company’s stock price compared to its revenues.

ttm (trailing twelve months)

The price to sales ratio, Price/Sales ratio, P/S ratio, or PSR, is a valuation metric for stocks. It is calculated by dividing the company's market cap by the revenue in the most recent year. It can also be calculated by dividing the per-share stock price by per-share revenue. The price to sales ratio is for trailing twelve months so the reported sales are for the four previous quarters. Longer time periods can be examined at times.

A smaller price to sales ratio is usually thought to be a better investment since the investor is paying less for each unit of sales. However, sales do not reveal the whole picture, as the company may be unprofitable with a low P/S ratio. Because of the limitations, this ratio is usually used only for unprofitable companies, since they don't have a price to earnings ratio (P/E ratio). The metric can be used to determine the value of a stock relative to its past performance. It may also be used to determine relative valuation of a sector or the market as a whole.

Price to sales ratios vary greatly between sectors, so they are most useful in comparing similar stocks within a sector or sub-sector. Comparing P/S ratios carries the implicit assumption that all firms in the comparison have an identical capital structure.

Price/Sales of companies in the Consumer Discretionary sector on BSE compared to Eicher Motors

What does Eicher Motors do?

Eicher Motors Limited manufactures and sells motorcycles and commercial vehicles in India and internationally. The company owns the Royal Enfield motorcycle brand that offers Classic, Bullet, Himalayan, Interceptor INT 650, Continental GT 650, and Thunderbird models. It designs, develops, manufactures, assembles, and sells two-wheelers, as well as sells related parts and accessories. The company, through its joint venture, Volvo Eicher Commercial Vehicles Limited, manufactures and sells light and medium duty trucks, heavy duty trucks, and buses under the Eicher brand; Volvo trucks; and engineering components and aggregates. Eicher Motors Limited was founded in 1948 and is based in Gurugram, India.

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