Enterprise Value-to-Sales (EV/Sales)

Corporate Finance Financial Ratios Financial Terms Dictionary

Contents

Enterprise Value to Sales (EV/Sales) is a financial ratio that measures how much it would cost to acquire a company’s value in terms of its sales.

A lower EV/Sales multiple indicates that the company is more attractive to invest in as it may be relatively undervalued.
This measurement is considered more accurate than price-to-sales ratio because EV/sales takes into account the company’s leverage.