Value a company using the Enterprise Value to Sales multiple.
Formula: EV/Sales = Enterprise Value / Annual Revenue Forward EV/Sales = EV / Next Year Revenue Useful for unprofitable high-growth companies
When to Use EV/Sales
EV/Sales is particularly useful for valuing high-growth companies that aren't yet profitable (no earnings for P/E). It's widely used in SaaS, biotech, and early-stage tech valuations.