EV/Sales
Enterprise value/sales is a financial ratio that compares the total value (as measured by enterprise value) of the company to its sales. The ratio is, strictly speaking, nominated in years; it demonstrates how many dollars of EV are generated by one dollar of yearly sales. Generally, the lower the ratio, the cheaper the company is.[1] Some investment professionals believe—as enterprise value and sales both consider debt and equity holders—EV/Sales is superior to the oft quoted price/sales ratio.[2]
References
External links
- "Enterprise-Value-To-Sales - EV/Sales". Investopedia.
- "Valuing Cyclical Companies by Using the Price/Sales Ratio". The Market Orcale. September 30, 2008.
|
This article is issued from Wikipedia - version of the Saturday, April 16, 2016. The text is available under the Creative Commons Attribution/Share Alike but additional terms may apply for the media files.