Source code for skfolio.descriptor._value._sales_to_price
"""Sales-to-price ratio descriptor."""
# Copyright (c) 2023-2026
# Author: Hugo Delatte <hugo.delatte@skfoliolabs.com>
# SPDX-License-Identifier: BSD-3-Clause
from __future__ import annotations
import numpy as np
from skfolio.containers import AssetPanel
from skfolio.descriptor._base import BaseDescriptor
from skfolio.typing import FloatArray
from skfolio.utils.stats import safe_divide
from skfolio.utils.validation import validate_asset_panel
[docs]
class SalesToPrice(BaseDescriptor, stateless=True):
r"""Sales-to-price ratio descriptor.
Computes the ratio of trailing twelve-month sales to market capitalization:
.. math::
\text{sales\_to\_price}(t) = \frac{\text{sales\_ttm}(t)}{\text{market\_cap}(t)}
Sales are less directly affected by accounting choices than earnings, providing a
stable value signal. Firms with high sales relative to market capitalization are
cheap on a sales basis [1]_. This ratio remains available for firms with negative
earnings or book equity, complementing :class:`BookToPrice`.
Parameters
----------
None
Attributes
----------
n_assets_ : int
Number of assets seen during fitting.
asset_names_ : ndarray of shape (n_assets,)
Asset names seen during fitting.
Notes
-----
Non-missing `market_cap` values must be finite and strictly positive.
This descriptor uses aggregate quantities (total sales divided by total market
capitalization) rather than per-share quantities (sales per share divided by price).
The two are mathematically equivalent:
.. math::
\frac{\text{sales\_ttm}}{\text{market\_cap}}
= \frac{\text{sales\_per\_share}}{\text{price}}
The aggregate form is preferred because it avoids subtle split-adjustment
mismatches between numerator and denominator. Aggregate fundamentals are the primary
form from data providers; per-share quantities are derived from them.
See Also
--------
BookToPrice : Common equity normalized by market capitalization.
CashFlowToPrice : Operating cash flow normalized by market capitalization.
References
----------
.. [1] "Do sales-price and debt-equity explain stock returns better than book-market
and firm size?" Financial Analysts Journal. Barbee, Mukherji & Raines (1996).
Examples
--------
>>> from skfolio.datasets import make_synthetic_characteristics
>>> from skfolio.descriptor import SalesToPrice
>>>
>>> X = make_synthetic_characteristics()
>>>
>>> descriptor = SalesToPrice()
>>> sales_to_price = descriptor.fit_transform(X)
"""
