EV to Sales Ratio
Calculate the EV to sales ratio, a valuation ratio that compares a company’s enterprise value (EV) to its total revenue.
This ratio compares the enterprise value (EV) to the total revenue generated by the company. It can provide insights into how efficiently a company is using its revenue to generate value for its investors.
The formula is as follows:
\[\text{Enterprise Value to Sales Ratio} = \text{Enterprise Value} / \text{Total Revenue}\]Also known as: EV/Sales.
EV to Sales Ratio in Python
Install the Finance Toolkit with:
pip install financetoolkit -U
Then call get_ev_to_sales_ratio as shown below.
from financetoolkit import Toolkit
toolkit = Toolkit(["AAPL", "TSLA"], api_key="FINANCIAL_MODELING_PREP_KEY")
ev_to_sales_ratio = toolkit.ratios.get_ev_to_sales_ratio()
Which returns:
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| AAPL | 8.464 | 5.6553 | 8.188 | 10.0953 | 9.9856 |
| TSLA | 22.0248 | 5.1403 | 8.8821 | 14.4425 | 16.6535 |
Parameters
The function accepts the following parameters:
- show_daily (bool, optional): Whether to show daily data. Defaults to False.
- diluted (bool, optional): Whether to use diluted shares in the calculation. Defaults to True.
- rounding (int, optional): The number of decimals to round the results to. Defaults to 4.
- growth (bool, optional): Whether to calculate the growth of the ratios. Defaults to False.
- lag (int | str, optional): The lag to use for the growth calculation. Defaults to 1.
- standardize (bool, optional): Whether to standardize (Z-Score) the result. When combined with growth=True, standardizes the growth values instead of the raw values. Defaults to False.
- trailing (int): Defines whether to select a trailing period. E.g. when selecting 4 with quarterly data, the TTM is calculated.