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Valuation

What is EV/Sales (Enterprise Value to Sales)?

EV/Sales compares a company's enterprise value to its total revenue, useful for valuing companies with negative earnings or inconsistent profits.

Formula

EV/Sales = Enterprise Value ÷ Annual Revenue

How to Interpret

Lower ratios suggest better value. Particularly useful for pre-profit tech and growth companies where P/E doesn't apply.

Typical Ranges

Below 3x for most industries. SaaS/platform companies may trade at 10-20x.

Learn More in the Academy

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Valuation MultiplesEquities
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Relative Valuation MethodsFundamental Analysis
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Revenue Streams & Pricing PowerFundamental Analysis

Find Stocks Using This Metric

Use the Equiscale Stock Screener to filter US or Indian stocks by EV/Sales.

US Stock Screener →Indian Stock Screener →