Series 79: EV/Sales Ratio

Taken from our Series 79 Top-off Online Guide

EV/Sales Ratio

The EV/sales ratio is less frequently used than EV/EBITDA, but is useful when one is analyzing a company with negligible or negative EBITDA, such as an early-stage company with costs that exceed revenues. In such cases, EV/EBITDA does not provide very meaningful information. To determine EV/sales, simply divide a company’s sales or revenue number into its enterprise value.

Since you're reading about Series 79: EV/Sales Ratio, you might also be interested in:

Solomon Exam Prep Study Materials for the Series 79
Please Enable Javascript
to view this content!