Direct determinant of price to sales ratios

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The key driver of revenue multiples is profit margins. Which of the following measures of profit margin is the most direct determinant of price to sales ratios?

a.Net Profit margin

b.Gross profit margin (Gross profit/Sales)

c.Pre-tax operating margin (EBIT/Sales)

d.After-tax operating margin (After tax EBIT/Sales)

Reference no: EM133002113

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