# EV to Sales Calculator

URL: https://speedycalculator.com/calculators/finance/ev-to-sales/
Last updated: 2026-10-25

> The EV to sales calculator values a company relative to its revenue: enterprise value (market cap plus debt, preferred shares and minority interest, minus cash) divided by annual sales.

## Inputs

- Market capitalisation
- Total debt
- Preferred shares
- Minority interest
- Cash and cash equivalents
- Sales (revenue)

## Results

- Enterprise value
- EV to sales

## Formula

```
EV = market cap + debt + preferred + minority interest − cash
EV/Sales = EV ÷ revenue
```

## Explanation

EV/Sales is useful for companies that aren't yet profitable, such as young software firms. Typical values range from below 1× for retailers to 10× or more for fast-growing software companies.

### How to use the EV to Sales Calculator

- **Market capitalisation**
- **Total debt**
- **Preferred shares**
- **Minority interest**
- **Cash and cash equivalents**
- **Sales (revenue)**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter market capitalisation, debt, preferred shares, minority interest, cash and annual sales.

### Tips

- Take figures from the same financial statements and the same fiscal year.
- Compare ratios with companies in the same industry, not across industries.
- Use several valuation measures together; no single ratio tells the whole story.
- Market prices change every second – refresh the share price before you rely on a result.

### Common mistakes to avoid

- Mixing per-share figures with company totals.
- Using trailing earnings for one company and forward earnings for another.
- Forgetting dilution from options and convertible securities.

### Inputs explained

FieldWhat to enterMarket capitalisationAmount in your currencyTotal debtAmount in your currencyPreferred sharesAmount in your currencyMinority interestAmount in your currencyCash and cash equivalentsAmount in your currencySales (revenue)Amount in your currency

### What each result means

- **Enterprise value** = [Market capitalisation] + [Total debt] + [Preferred shares] + [Minority interest] - [Cash and cash equivalents]
- **EV to sales** = [Enterprise value]÷[Sales (revenue)]

### Example values

How the main result changes when **Market capitalisation** changes and everything else stays at the example values above:

Market capitalisationEV to sales (×)2,500,000,0001.173,750,000,0001.585,000,000,00026,250,000,0002.427,500,000,0002.8310,000,000,0003.67

## Worked example

Inputs — Market capitalisation: $5,000,000,000; Total debt: $1,500,000,000; Preferred shares: $0; Minority interest: $100,000,000; Cash and cash equivalents: $600,000,000; Sales (revenue): $3,000,000,000.

Results — Enterprise value = $6,000,000,000.00; **EV to sales = 2 ×**.

## FAQ

**What is a good EV/Sales ratio?**
It depends on margins and growth; 1–3× is common for mature companies.

**Why use EV/Sales instead of P/S?**
EV/Sales accounts for debt and cash.

**When is EV/Sales most useful?**
For companies with little or no profit.

**What formula does the EV to Sales Calculator use?**
EV = market cap + debt + preferred + minority interest − cash.


## Sources

- [Corporate Finance Institute – financial ratios](https://corporatefinanceinstitute.com/)