P/S Ratio

[bwzheng2010]

📊 Price-to-Sales (P/S) Ratio

1. What is the P/S Ratio?

The Price-to-Sales (P/S) Ratio compares a company’s market capitalization to its trailing twelve months (TTM) revenue:

$$P/S = \frac{Market\ Capitalization}{TTM\ Revenue}$$

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2. How to Get P/S Ratio with defeatbeta-api

import defeatbeta_api
from defeatbeta_api.data.ticker import Ticker

# Example: Navida (NVDA)
ticker = Ticker("NVDA")
ps_df = ticker.ps_ratio()

print(ps_df.to_string())

Example Output

report_date	market_capitalization	fiscal_quarter	ttm_revenue	exchange_rate	ttm_revenue_usd	ps_ratio
2024-04-30	2.125297e+12	2024-04-30	7.977400e+10	1.0	7.977400e+10	26.64
2024-05-01	2.042646e+12	2024-04-30	7.977400e+10	1.0	7.977400e+10	25.61
2024-05-02	2.111030e+12	2024-04-30	7.977400e+10	1.0	7.977400e+10	26.46
2024-05-03	2.184087e+12	2024-04-30	7.977400e+10	1.0	7.977400e+10	27.38
2024-05-06	2.266491e+12	2024-04-30	7.977400e+10	1.0	7.977400e+10	28.41
2024-05-07	2.227380e+12	2024-04-30	7.977400e+10	1.0	7.977400e+10	27.92
...	...	...	...	...	...	...
2025-08-21	4.267335e+12	2025-07-31	1.652180e+11	1.0	1.652180e+11	25.83
2025-08-22	4.340741e+12	2025-07-31	1.652180e+11	1.0	1.652180e+11	26.27
2025-08-25	4.385127e+12	2025-07-31	1.652180e+11	1.0	1.652180e+11	26.54
2025-08-26	4.432926e+12	2025-07-31	1.652180e+11	1.0	1.652180e+11	26.83
2025-08-27	4.428780e+12	2025-07-31	1.652180e+11	1.0	1.652180e+11	26.81
2025-08-28	4.393906e+12	2025-07-31	1.652180e+11	1.0	1.652180e+11	26.59
2025-08-29	4.247825e+12	2025-07-31	1.652180e+11	1.0	1.652180e+11	25.71

🔎 Columns explained:

• report_date → date of market capitalization record
• market_capitalization → company’s market cap on that date
• fiscal_quarter → quarter-end date used for TTM revenue
• ttm_revenue → trailing twelve months revenue in local currency
• exchange_rate → FX rate used to convert local revenue into USD
• ttm_revenue_usd → TTM revenue converted to USD
• ps_ratio → computed P/S ratio

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3. How defeatbeta-api Implements P/S Ratio

The method Ticker.ps_ratio() works as follows:

1. Market Capitalization

   • Pulled from market_capitalization()
   • Each record represents the company’s valuation on a given date

2. TTM Revenue (in USD)

   • Computed from the last four quarters of revenue
   • Converted into USD using the reported exchange rate
   • Implemented in _ttm_revenue()

3. Data Alignment

   • Uses pandas.merge_asof (with direction="backward")
   • Each market cap date is paired with the most recent ttm revenue record available

4. Final Formula

   • For each aligned record:

$$P/S = \frac{Market\ Cap}{TTM\ Revenue\ (USD)}$$

• Results rounded to 2 decimals