Enterprise-Value-to-Sales

(redirected from Enterprise Value to Sales Ratio)

Enterprise-Value-to-Sales

A ratio of a company's enterprise value to its sales. The enterprise value is the theoretical price of a takeover and includes a wide variety of assets and liabilities, while sales is the value of the products the company sells in a given year. Generally speaking, a low ratio is considered better because it indicates that a company has high sales relative to its value. However, a high ratio may indicate that investors believe that its sales will soon rise.
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References in periodicals archive ?
The firm's enterprise value to sales ratio of 3.1 times is, though, understandably cautious given its recent history of missing estimates, Shore noted.
Nudell says his new price target is also derived by modeling a 5.2-times enterprise value to sales ratio to his expected FY22 revenues - a multiple that is generally in-line with recent small-cap med-tech acquisitions - and discounting it to the present.
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