Also called the Price to Sales Ratio.

Market capitalization / Turnover or Close price / Turnover per shares

Whereas net income or book value are influenced by management policies or accounting rules, net sales is a non ambiguous financial item. As a result, the Price to Sales ratio stands apart from measures such as PER or Price to Book value ratios. Nevertheless, as any other ratio, it should be analysed in the light of other factors such as the competitive environment, the barriers to entry and the profitability.