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How do investors evaluate upcoming companies that do not have past record of profitab
Here, they can opt for market capitalisation to sales ratio. Interestingly, in the past, this ratio fared well compared with other ratios that are known for discovering value picks.
The fundamental philosophy on which this ratio is based is that corporate profit or earning is subject to manipulation. On the contrary, revenue or sales is more reliable and a bit difficult to manipulate. Thus, results provided by this ratio are more dependable compared with other ratios that primarily focus or depend on profit
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