Kenneth Fisher  |  Price-to-Sales Investor

Money manager, best-selling author and long-time Forbes columnist Kenneth Fisher wowed Wall Street in the early 1980s when his book Super Stocks first popularized the idea of analyzing price-to-sales ratios (PSR) as a means of identifying attractive stocks.

Fisher demonstrated that the lower a company's stock price is relative to its sales, the more attractive its stock is —presuming the company is also growing its earnings and has a strong balance sheet with little debt. Fisher also recognized that price-to-sales ratios and other metrics he developed to analyze stocks (such as the "price-to-research" ratio for technology and medical companies) would vary based on the size of the company and the industry in which it operated; his strategy takes these variations into account. It is well-suited for investors who want to own conservatively financed, well-growing companies that have been overlooked—hopefully temporarily—by the rest of Wall Street.

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