EV to Sales Calculator (Enterprise Value to Revenue)

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Current share price multiplied by total shares outstanding.
All short-term and long-term debt obligations on the balance sheet.
Cash, bank balances and highly liquid short-term investments. Subtracted from EV because an acquirer inherits them.
Market value of preferred equity. Add if the company has issued preferred stock.
Book or market value of non-controlling interests in subsidiaries. Add if the company consolidates subsidiaries.
Total top-line revenue for the last twelve months (LTM) or the most recent fiscal year.
Used only to add sector context to the interpretation. Does not change the calculation.
Currency
EV/Sales multipleElevated (growth premium)
3.4x

Enterprise Value divided by annual revenue

Enterprise value$1,700,000,000
Sector median EV/Sales7.3x
Premium / discount to sector-0.5%
Revenue implied by sector median$232,876,712
3.4 x
Very low<1Moderate1-3Elevated3-6High6-15Very high15+
This company3.4
Sector median7.3

EV/Sales is 3.40x - Elevated (growth premium)

  • The EV/Sales multiple of 3.40x is elevated (growth premium), sitting 53.4% below the sector median of 7.3x.
  • Ratios in the 3x to 6x range typically imply that the market expects above-average revenue growth or expanding margins in the coming years.
  • At the sector median multiple (7.3x), the enterprise value of $1.70B would imply revenue of $232.88M, a $267.12M decrease from current revenue.

Next stepCompare against direct peers within the same sector and growth tier. A single ratio in isolation can mislead: always pair EV/Sales with gross margin, revenue growth rate and capital structure.

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