How to Use Price-to-Sales Ratio to Find Value in Low-Margin Industries

Most investors instinctively reach for the price-to-earnings ratio when evaluating a stock. It’s the most publicized metric, the one that makes headlines when someone declares a company “overvalued” or “cheap.” But P/E ratios become nearly useless in the very industries where active investors can find the most consistent bargains—low-margin sectors like retail, groceries, airlines, and […]