Price To Sales Explodes To 40+

Both the S&P 500 and Nasdaq 100 are up just over 5% month-to-date, with both indices more than 5% above their 50-DMAs as well. Today we wanted to highlight a chart from our most recent Bespoke Report newsletter looking at the price-to-sales (P/S) ratios of the key mega-cap FANG+ stocks. As shown, NVDA’s price-to-sales ratio has jumped to a preposterous level of 42x. That’s even higher than the crazy 34 price-to-sales ratio it had at its prior peak. 

Notably, though, the rest of the mega-caps have P/S ratios that are below prior highs. TSLA’s P/S peaked above 25 a few years ago and is currently below 10 (that’s still very high). META’s P/S traded between 15 and 20 in its early days as a public company but is down to just north of 5 now. And AMZN has the lowest P/S of this group at 2.5x. Take a closer look at how these ratios have changed over time for all seven of the mega-caps shown:

(Click on image to enlarge)

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