Price to Revenue (P/Rev)
The Price to Revenue (P/Rev) ratio is a financial metric used to evaluate a company's current stock price in relation to its revenue. It is calculated by dividing the current market capitalization of the company by its total revenue over the last 12 months.
The P/Rev ratio is considered to be a more comprehensive valuation metric than the Price to Earnings (P/E) ratio because revenue is generally considered to be more difficult to manipulate than earnings. P/Rev is commonly used in the technology and startup industries, where companies may not yet have profits or earnings.
However, it is important to note that P/Rev should not be used in isolation to make investment decisions. It should be used in conjunction with other financial metrics and a thorough analysis of the company's financial health and growth potential.
Additional Details
Metric Name | Type | Default Period Type |
---|---|---|
price_to_revenue | fin_metric | FY |
Formatting Details
Data Format | Display Format | Unit |
---|---|---|
float | number | multiple |