Jump to content

Enterprise value-to-sales ratio

Add links
From Wikipedia, the free encyclopedia
(Redirected from EV/sales)

Enterprise value/sales is a financial ratio that compares the total value (as measured by enterprise value) of the company to its sales. The ratio is, strictly speaking, denominated in years; it demonstrates how many dollars of EV are generated by one dollar of yearly sales. Generally, the lower the ratio, the cheaper the company is.[1] Some investment professionals believe—as enterprise value and sales both consider debt and equity holders—EV/Sales is superior to the oft quoted price/sales ratio.[2]

References

[edit]
  1. ^ Staff, Investopedia (3 July 2005). "Enterprise-Value-To-Sales - EV/Sales".
  2. ^ Ltd, Market Oracle. "Valuing Cyclical Companies by Using the Price/Sales Ratio :: The Market Oracle ::". www.marketoracle.co.uk.
[edit]
Retrieved from "https://en.wikipedia.org/w/index.php?title=Enterprise_value-to-sales_ratio&oldid=1060717105"