S&P 500 Price-to-Sales Ratio (TTM)

Live value temporarily unavailable.

Source: Company filings (aggregated)

Data updated daily

What it measures

The S&P 500 P/S ratio (price-to-sales, trailing twelve months) measures the aggregate market capitalization of the index relative to the aggregate trailing-twelve-month revenues of its constituents. A P/S of 3.0 means investors are paying $3 of market price for every $1 of aggregate annual revenue generated by S&P 500 companies.

Why it matters

The P/S ratio is useful precisely because revenues are harder to manipulate through accounting choices than earnings — a company cannot cut costs to manufacture revenue growth. It remains meaningful even when earnings are negative, making it a more robust cross-cycle valuation gauge than P/E during recessions or margin compression periods. Historically, very high P/S readings have been associated with subsequent multiple compression as profit margins mean-revert. The ratio is most informative alongside margin metrics: a high P/S is less alarming when net margins are also expanding, and more concerning when margins are under pressure.

How it is calculated

P/S (TTM) = Σ Market Cap ÷ Σ TTM Revenue

LENSE computes the S&P 500 P/S as a market-capitalization-weighted aggregate — total index market cap divided by total trailing-twelve-month revenue — not a simple average of per-company ratios. Trailing-twelve-month revenue is constructed by summing the four most recently reported fiscal quarters per constituent using as-reported figures. Market capitalization is computed daily from constituent share counts and closing prices. Index constituency is resolved point-in-time using point-in-time index constituency, ensuring additions and removals are reflected as of each historical date.

Recent (monthly)

Recent data unavailable.

Data source: Company filings (aggregated). Computed and published by LENSE Analytics.