The Drivers Module shows relationships between Macys's most relevant fundamental drivers and provides multiple suggestions of what could possibly affect the performance of Macys over time as well as its relative position and ranking within its peers. Please see also Stocks Correlation
Macys Price to Sales vs. Price to Earning Fundamental AnalysisMacys is rated below average in price to earning category among related companies. It is rated below average in price to sales category among related companies fabricating about 0.06 of Price to Sales per Price to Earning. The ratio of Price to Earning to Price to Sales for Macys is roughly 16.19 Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investor monitor on a daily basis. Holding a low PE stock is less risky because. When a company's profitability fall, it is likely that earnings will also go down..In other words, if you start from a lower position your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.Price 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.
The 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.