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EV to Sales Calculator
Calculate the Enterprise Value to Sales ratio to assess company valuation relative to revenue
Enterprise Value Components
Current market value of equity
TTM or fiscal year revenue
Short-term + long-term debt
Liquid assets available
Value of preferred equity
Non-controlling interests
Understanding EV to Sales Ratio
What is EV to Sales?
The Enterprise Value to Sales (EV/Sales) ratio is a valuation metric that compares a company's enterprise value to its annual sales revenue. It shows how much investors are willing to pay for each dollar of sales.
When to Use EV/Sales
- Companies with negative earnings (can't use P/E ratio)
- Companies with negative EBITDA (can't use EV/EBITDA)
- Comparing companies across different capital structures
- Evaluating early-stage or growth companies
Interpretation Guidelines
Low Ratios (< 3x)
- Potentially undervalued
- Mature, stable companies
- Cyclical or commodity businesses
High Ratios (> 10x)
- High growth expectations
- Technology companies
- Potentially overvalued
Quick Examples
UiPath Example (2021)
Market Cap: $25.1B
Total Debt: $26.3M
Cash: $1.83B
Revenue: $736M
EV/Sales: 31.7x
Mature Tech Company
Market Cap: $100B
Total Debt: $20B
Cash: $30B
Revenue: $30B
EV/Sales: 3.0x
Valuation Benchmarks
Conservative (< 3x)Low Risk
Moderate (3-8x)Medium Risk
Growth (8-15x)High Risk
Speculative (> 15x)Very High Risk
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