EV/Sales Ratio Calculator
Calculate Enterprise Value to Sales (EV/Sales) ratio.
Enter market cap, debt, cash, and annual revenue to value a company relative to its revenue.
Enterprise Value to Sales (EV/Sales or EV/Revenue)
The EV/Sales ratio compares a company’s total enterprise value to its annual revenue. Unlike the Price-to-Sales (P/S) ratio, EV/Sales accounts for a company’s debt and cash, giving a cleaner picture of the true business value relative to its revenue.
Formula:
Enterprise Value = Market Capitalization + Total Debt - Cash and Cash Equivalents
EV/Sales = Enterprise Value / Annual Revenue
Why use EV instead of market cap?
Two companies can have the same market cap but very different levels of debt. A company with $1B in debt and a $500M market cap has an enterprise value of $1.5B, because an acquirer would have to take on that debt as well as buy the shares. EV/Sales captures that; P/S does not.
Interpretation by industry
Read this table before reading the ratio. A supermarket at 0.4x and a software company at 12x can be priced identically per dollar of profit, because the supermarket keeps 2 cents of every sales dollar and the software company keeps 25. Out of sector, this ratio means very little.
| Industry | Typical EV/Sales |
|---|---|
| Grocery / Retail | 0.2 – 0.8x |
| Manufacturing | 0.5 – 2.0x |
| Healthcare | 2 – 6x |
| Software / SaaS | 4 – 15x |
| High-growth tech | 10 – 30x+ |
EV/Sales vs P/S:
- P/S is simpler and uses only market cap and revenue
- EV/Sales is more accurate for comparing companies with different capital structures
- For debt-free companies with little cash, both give similar results
How to interpret:
- Low EV/Sales: cheap per dollar of revenue, but check whether those dollars carry any margin
- High EV/Sales: market expects strong growth or premium margins
- Always compare within the same industry
The same enterprise value as EV/EBITDA
This page and the EV/EBITDA calculator define enterprise value identically, as market cap plus debt minus cash. The difference is only the denominator, and the reason to reach for this one is that revenue is always positive while EBITDA often is not.
Example:
- Market cap: $2B, Debt: $500M, Cash: $200M, Revenue: $800M
- EV = $2B + $500M - $200M = $2.3B
- EV/Sales = $2.3B / $0.8B = 2.88x
High-margin businesses justify higher multiples. A SaaS company at 10x EV/Sales may be cheaper than a retailer at 1x if margins differ dramatically.
How we build and check this calculator
This calculator runs entirely in your browser, so the numbers you enter stay on your device. The math behind it is written by hand and tested against worked examples and standard references before the page goes live.
SuperGlobalCalculator is independently built and maintained. See how we build and verify our calculators.