oboloo Glossary

Enterprise Value To Sales

oboloo Glossary

Enterprise Value To Sales

Enterprise Value to Sales, otherwise known as “EV/Sales”, is a metric used to measure the value of a company relative to its sales or revenue. It combines the enterprise value of a company with its total sales over a given period of time, giving an indication of how much potential customers are willing to pay for a company’s products and services. EV/Sales can be used to compare companies in similar industries, identify trends in their valuation, and decide which companies may offer better returns on investment. It’s also useful for spotting opportunities for acquisitions or strategic partnerships.