The Price to Sales Ratio, also known as the PSR, is a valuation metric that looks at a stock’s market price versus its per share revenue.
Alternatively, you can calculate it by dividing a company’s total market capitalization by its total revenue in the most recent fiscal year. The ratio indicates how much value (how much investors are willing to pay) is placed on each dollar of revenue generated by the company.
A high PSR could mean a company is overvalued, or that investors are betting on future growth and therefore willing to pay a premium for current ownership. The opposite could be said of a low relative PSR.
Managing a fund based on P/E Ratio generally tends to put valuation ahead of other criteria when selecting stocks
The IRS adjusts the contribution limits year to year to accommodate cost-of-living adjustments
SEP IRAs do not have to be established until taxes are filed for the year, and it can be done quickly
The Wilshire 5000 is a cap-weighted index and it can be considered the broadest index of all U.S. equity markets
Residual income is a stream of income that persists from one work project or investment
The Dividend Payout Ratio represents the percentage of a company’s earnings/profits that they pay-out to shareholders
Active management is the practice of attempting to outperform the market with selection and timing
Market-on-open orders are looking to buy or sell immediately after the market opens, at the opening price
There are many nuances to filing taxes, and many kinds of small businesses, so this form comes into use quite often