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Market P/So Ratio & Justified Po/So Ratio

January 4, 2016

P/S = market value of equity / total sales

= market price per share / sales per share

Po/So = [(Eo/So) * (1 – b) * (1 + g)] / ( r – g)

b = retention ratio

profit margin = Eo/So

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From → Asset Valuation

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