what is enterprise value to sales ev sales 
enterprise value to sales ev sales measures how much it would cost to purchase a company s value in terms of its sales a lower ev sales multiple indicates that a company is a more attractive investment as it may be relatively undervalued essentially it uses enterprise value and not market capitalization like the p s ratio enterprise value adds debt and preferred shares to the market cap and subtracts cash since it does account for a company s debt load the ev sales ratio is said to be superior although it involves more steps and isn t always as readily available 