SP500_PS_RATIO
S&P 500 price-to-sales — equity price vs aggregate revenue
Latest value
3.3500
as of 2025-12-31
All-time percentile
98th
1-year change
+12.4%
Time series
Showing 5 of 5 data points
About this series
The S&P 500's aggregate market price divided by aggregate revenue (sales). Annual cadence on Multpl.
Why it matters: Price-to-sales sidesteps the accounting noise that makes P/E and P/B unreliable in some regimes (earnings can be negative, manipulated, or one-off; revenue is harder to fake). For that reason it's the favored ratio of value investors during earnings-distorted regimes (recessions, crises) and for high-growth sectors where earnings are reinvested rather than paid out. Hussman, GMO, and others have used aggregate price-to-sales as one of their headline overvaluation signals because it's mechanically harder to bid up than P/E.
How to read it: Long-run average is roughly 1.0-1.5. Sub-1 = historically cheap. Above 2 = elevated. Above 3 has only happened during late-1990s tech mania and the post-2020 era. A standalone elevated P/S reading is one of the most reliable "this market is structurally expensive" signals in the canon.
Caveats: Like P/B, structural drift matters — modern higher-margin tech-heavy index composition mechanically raises P/S vs the older industrial-heavy composition. Some of "today's P/S is high" reflects "today's S&P has higher net margins than 1980's S&P," not pure overvaluation.