Dados B3 › Glossary

Glossary

P/Sales and EV/Sales

How much the market pays for each real of the company's sales.

What it is

How much the market pays for each real of the company's sales. Shown on the stocks pages.

How Dados B3 calculates it

market value ÷ the year's net revenue (P/Sales); enterprise value ÷ net revenue (EV/Sales).

Example

Illustrative example, with made-up numbers to keep the arithmetic easy: Market value R$ 2 billion and net revenue of R$ 4 billion: P/Sales = 0.5. The market pays 50 cents for every R$ 1 the company sells.

What to watch for when reading it

• Revenue is not profit: a thin margin makes the same P/Sales mean very little or a lot.
• Useful when profit is temporarily depressed; compare only companies with similar margins.

See also

• Net margin
• Enterprise value (EV)

Methodology · All indicators

Educational content to understand what each number means. It is not a recommendation to buy or sell.