EV to Sales Ratio Calculator
Calculate the Enterprise Value to Sales ratio, a key valuation metric that compares a company’s total value to its revenue.
(Market Cap + Debt – Cash)
(Last 12 months revenue)
Understanding EV/Sales Ratio
What is EV/Sales?
The Enterprise Value to Sales (EV/Sales) ratio compares a company’s total valuation (including debt) to its annual revenue. It’s particularly useful for:
- Comparing companies with different capital structures
- Evaluating companies that are not yet profitable
- Assessing high-growth companies where earnings metrics may be distorted
Calculation Formula
EV/Sales = Enterprise Value ÷ Annual Revenue
Where:
Enterprise Value = Market Cap + Total Debt – Cash & Equivalents
Annual Revenue = Total sales over the last 12 months
Industry Benchmark Examples
| Industry | Typical EV/Sales Range |
|---|---|
| Technology (Software) | 5-10x |
| Retail | 0.5-1.5x |
| Manufacturing | 1-2x |
| Healthcare | 3-6x |