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Price-to-Sales Ratio (P2S) versus Sharpe Ratio

Price-to-Sales Ratio (P2S) versus Sharpe Ratio

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How do you value companies which have IPOed recently? How do you compare them amongst their peers? Valuing companies using a linear extrapolation of their revenues and profits leads to an ingenious method to benchmark stocks against each other. Here we present such a method, dubbed the growth average U1. The Appendix includes MySQL code to calculat...

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... Finally we want to look at the relationship of P2S to Sharpe Ratio in Figure 7. One could have expected to see higher Sharpe Ratios with increasing P2S. ...

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