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.
Find Stocks Using This Metric
Use the Equiscale Stock Screener to filter Indian stocks by EV/Sales.
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