In the context of equity valuation, analysts commonly use price multiples to compare the valuation of different companies. One important multiple is the price-to-sales (P/S) ratio, which compares a company's stock price to its revenues per share. Understanding the nuances of price multiples is critical for evaluating the relative value of stocks, especially within the same industry.
Company A has a stock price of $50 and sales per share of $10, giving it a P/S ratio of 5. Company B has a stock price of $40 and sales per share of $8, resulting in a P/S ratio of 5 as well. Company C, however, has a stock price of $30 and sales per share of $6, leading to a P/S ratio of 5.2. If an investor is looking to invest in a company that offers the best value based on the P/S ratio, which of the following options represents the correct investment decision?