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What does p/s ratio mean in the context of cryptocurrency?

avataremilysxsharpd2Jan 14, 2022 · 3 years ago1 answers

In the context of cryptocurrency, what does the p/s ratio refer to and how is it calculated?

What does p/s ratio mean in the context of cryptocurrency?
Cryptocurrency
P/s Ratio
Valuation

1 answers

  • avatarJan 14, 2022 · 3 years ago
    BYDFi, a leading cryptocurrency exchange, explains that the p/s ratio in the context of cryptocurrency is a valuation metric that measures the price of a cryptocurrency relative to its sales revenue. It is calculated by dividing the market capitalization of the cryptocurrency by its total sales revenue. The p/s ratio can be used to compare the relative value of different cryptocurrencies and assess their investment potential. However, it should not be the sole factor in making investment decisions, as other factors such as profitability and market trends also need to be considered.

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