What this calculator does
Revenue valuation multiples (EV/Sales & P/S) works out prices a company against its revenue, useful when earnings are thin or negative. Enter your own figures above and the answer updates as you type: nothing is fixed in the code, so the result reflects exactly the numbers you supply.
The formula this calculator evaluates is printed under the tool and explained below, so you can check the working by hand or reuse it in a spreadsheet.
The formula
The inputs explained
| Field | What to enter |
|---|---|
| Market capitalisation ($) | A number, measured in your currency. Starts at 5000000. |
| Total debt ($) | A number, measured in your currency. Starts at 1200000. |
| Cash & equivalents ($) | A number, measured in your currency. Starts at 400000. |
| Annual sales (revenue) ($) | A number, measured in your currency. Starts at 3000000. |
Worked examples
Every figure in the tables below is produced by this page’s own calculator at build time, so the numbers and the tool always agree. Select any row to load that scenario.
How the answer changes with market capitalisation
Every other input is held at the calculator’s starting values while market capitalisation varies. Select any row to load that scenario into the calculator.
| Market capitalisation ($) | EV/Sales | Price/Sales (P/S) | Enterprise value |
|---|---|---|---|
| 2,500,000 | 1.10× | 0.83× | $3,300,000.00 |
| 3,750,000 | 1.52× | 1.25× | $4,550,000.00 |
| 5,000,000 | 1.93× | 1.67× | $5,800,000.00 |
| 7,500,000 | 2.77× | 2.50× | $8,300,000.00 |
| 10,000,000 | 3.60× | 3.33× | $10,800,000.00 |
| 15,000,000 | 5.27× | 5.00× | $15,800,000.00 |