Stock market guru's...

[Hitman]

AWS net sales: $23.06 billion actual, versus $23.13 billion expected

 

ee analysts lo inta correct ga ela estimate chestaru... or idi anta mana 

training aa???

[bulreddy]

appatlo satyam lingaraju trainign ichadu anta 

[Vaaaampire]

Lot of companies give estimated revenue for next quarter while giving ER

[dasari4kntr]

Forward sales ratio

 

The Forward Sales Ratio (FSR) is a financial metric used by investors to evaluate the price of a stock relative to the company's projected future sales. It's calculated by dividing the market capitalization of a company by its estimated sales for a future period. The formula for Forward Sales Ratio is:

\[ \text{FSR} = \frac{\text{Market Capitalization}}{\text{Projected Sales}} \]

Here are some key points regarding the Forward Sales Ratio:

1. **Future Sales Estimates:**
   - The accuracy of the FSR depends on the accuracy of the sales projections. Sales forecasts can be obtained from company guidance, analyst projections, or other forecasting methods.

2. **Comparison:**
   - The FSR is often used to compare different companies within the same industry. A lower FSR might indicate a more attractively priced company relative to its sales outlook, while a higher FSR might suggest a relatively overpriced company.

3. **Investment Decisions:**
   - Investors may use the FSR as part of their analysis to make investment decisions. For example, they might look for companies with lower FSR values as potential investment opportunities.

4. **Industry Trends:**
   - The FSR can also reflect industry trends or the market's expectations for a particular sector’s growth.

5. **Limitations:**
   - Like any financial metric, the FSR has limitations. It relies on projected sales, which are inherently uncertain. Moreover, it doesn't account for factors like profitability, debt, or other financial conditions of the companies being analyzed.

6. **Context:**
   - It's essential to use the FSR in the context of other financial metrics and qualitative factors to get a more holistic view of a company's financial health and investment potential.

The Forward Sales Ratio can be a useful tool for investors, but it should be used alongside other analyses to make well-informed investment decisions.