what is enterprise value to sales ev sales 
enterprise value to sales ev sales is a financial valuation measure that compares the enterprise value ev of a company to its annual sales the ev sales multiple gives investors a quantifiable metric of how to value a company based on its sales while taking account of both the company s equity and debt the formula for enterprise value to sales ev sales mc d cc annual sales where mc market capitalization d debt cc cash and cash equivalents begin aligned text ev sales frac text mc text d text cc text annual sales textbf where text mc text market capitalization text d text debt text cc text cash and cash equivalents end aligned ev sales annual salesmc d cc where mc market capitalizationd debtcc cash and cash equivalents 