EV / Sales
Short definition
EV/sales is enterprise value over revenue. It is used when the name is loss-making or EBITDA is not yet settled; it hides the margin assumption in the multiple.
Detailed explanation
A high multiple on a thin margin means value is paid before profit. IFRS 15 revenue recognition (gross vs net) breaks comps.
When growth stalls the multiple is hostage to realised margin. Once EBITDA settles, EV/EBITDA is more honest.
Why it matters for the CFO
In early-stage and low-profit growth this may be the only multiple. The CFO must write the implied margin in the open.
How it is calculated
FD/Satış = İşletme değeri / Satış gelirleri
Variables in the formula
- EV/Sales: EV ÷ revenue
How to read it
EV/sales 1.5x with a 10% target EBITDA margin implies EV/EBITDA 15x. If the margin misses, value misses.
Numerical example
EV 1,220 mn TL, sales 400 → EV/sales = 3.05x.
Related calculators
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What to learn next
Definitions are educational. They are not investment, credit or tax advice.