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Sunday, June 3, 2012
4 Consumer Stocks Trading Dirt Cheap Despite Good Analyst Ratings
Are you on the prowl for companies that analysts have rated highly, but that look worth more than their current price indicates? If so, we ran a screen you might find interesting.The Price/Sales ratio is a price-multiple valuation metric used to help identify if a firm is cheap by its twelve month trailing sales numbers. In the most basic terms it let's an investor know how much the investment community is willing to pay for every dollars worth of sales. A firm with a P/S ratio of one or lower would be viewed as cheap because investors are paying $1 or less for every dollars worth of a firm's sales. On the other hand, a firm is generally considered to be expensive when the P/S ratio is above three. These are general guidelines used by the investment community not hard rules to be clear. Price/Sales Ratio = Current Stock
... Read the rest at SeekingAlpha.com
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