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O'Shaughnessy Price-to-Sales Stock Screener
Use this screener to find companies whose stock price valuation is low relative to sales.
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"The king of the value factors" is how James O'Shaughnessy describes the P/S ratio in his seminal book on investing strategies, What Works on Wall Street (McGraw-Hill, 1997). Using Standard & Poor's CompuStat database, his exhaustive analysis makes clear that "the stock market methodically rewards certain investment strategies while punishing others." No matter what your style of investing, O'Shaughnessy's research concludes that "low price-to-sales ratios beat the market more than any other value ratio, and do so more consistently."
As powerful a valuation metric as the P/S ratio may be, it would be a mistake for investors to put all their stock price valuation eggs in one basket. However, the P/S ratio does provide another perspective that complements the other valuation indicators - particularly the P/E ratio - and is a worthwhile addition to an investor's stock analysis toolbox.
A price-to-sales ratio (PSR) is similar to its price-to-earning ratio, but measures the price of the company against annual sales instead of earning. We wanted to screen this theory and combine PSR with the Piotroski Score and the relative strength (Price Index).
Remarks:
- For some investors, like James Montier, Price-to-sales has always been one of their least favourite valuation measures as it ignores profitability.
- In our screener we divide NCAV by market value. In our screener you one should select companies with an NCAV > 1.5.