A price-to-sales ratio helps identify a company that may be either undervalued or overvalued when compared to its share price in the market. Investment experts may depend heavily on price-to-sales ratios, because revenue data typically is more difficult to manipulate or modify than a firm's net income or book value. Investors want the truth, whether good or bad. Sales-to-price ratios identify a company strength without considering operating expenses, which historically can be manipulated
