Price to Sales AnalysisPrice to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
About Price to SalesThe most important factor to remember is that the price of equity takes a firm's debt into account, whereas the sales does not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
|Compare to competition|
Based on latest financial disclosure the price to sales indicator of VanEck Vectors Biotech ETF is roughly 4.72 times. This is much higher than that of the VanEck family, and significantly higher than that of Health category, The Price to Sales for all etfs is over 1000% lower than the firm.