ENTERPRISE-VALUE-TO-SALES - EV/SALES

Valuation measure comparing the firm’s value and its sales. It helps investors in getting an idea of how much it would cost to purchase the company’s shares. This is the expansion of the price-to-sales valuation, which employs market capitalization instead of enterprise value. In general, the lower the EV/Sales, the more appealing or undervalued the firm is said to be.