Overview
EV/Sales compares enterprise value with revenue.
Formula
EV/Sales = Enterprise Value / Revenue
How to Interpret
High Value
A high EV/Sales requires strong growth, margin potential, or strategic quality.
Low Value
A low EV/Sales can indicate cheap revenue or poor profitability.
Where It Is Used
Interpreting EV/Sales with company-specific distribution ranges is usually more stable than relying only on sector average.