What is EV/Sales?
The Enterprise Value to Sales (EV/Sales) ratio is a valuation multiple that compares a company’s total enterprise value to its annual revenue. It’s often used to value companies that aren’t yet profitable, since it doesn’t rely on earnings.
The Formula
EV / Sales = Enterprise Value ÷ Annual Revenue. A lower ratio can suggest a company is cheaper relative to its sales, though comparisons are most meaningful within the same industry.
Note: This calculator is for general educational and planning purposes only and is not investment advice.
Last reviewed August 2026