EV/Sales

From Wikipedia, the free encyclopedia

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, nominated 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

  1. ↑ http://www.investopedia.com/terms/e/enterprisevaluesales.asp
  2. ↑ http://www.marketoracle.co.uk/Article6552.html

External links

Financial ratios
  • Capitalization rate
  • Debt/equity
  • Dividend cover
  • Dividend payout
  • EV/EBITDA
  • EV/GCI
  • EV/Sales
  • CROCI
  • CAPE
  • LTV
  • Price/book
  • Price/cash flow
  • Price/earnings
  • P/E to growth
  • Price/sales
  • Risk-adjusted return on capital
  • Return on assets
  • Return on net assets
  • Return on capital employed
  • Return on equity
  • Return on tangible equity
  • Return on capital
  • Short interest
  • Sustainable growth rate
  • Sharpe ratio
  • Treynor ratio

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