EV/Revenue

Enterprise Value / Revenue (EV/Revenue or Sales) ratio helps investors in calculating of how much it costs to buy the company's sales. This measure is an expansion of the price-to-sales valuation, which uses market capitalization instead of enterprise value. Generally the low EV/sales of a company, in comparison to its peer group or benchmarks, the more attractive or undervalued the company is believed to be.

Calculated as: (Market Capitalization + Total Debt + Preferred Shares – Cash & Cash Equivalents)/12-month Revenue or Sales