Enterprise value (EV) is a measure of the value of a company regardless of its financing. It is calculated as follows:
EV = market capitalization - cash + debt.
Dividing enterprise value by turnover provides an important key figure for assessing the valuation of fast-growing but still loss-making technology companies.
EV / Sales current refers to the enterprise value at the current point in time. The current market capitalization and the values for cash, debt and sales from the last quarterly figures are used for this purpose.
EV/Sales simply explained
Point distribution for HGI score
- 3 Pts.
- ≤ 8
- 2 Pts.
- > 8 and ≤ 10
- 1 Pts.
- > 10 and ≤ 12
Data for Pinduoduo
Enterprise Value
USD127.36b
Turnover or sales (TTM Jul 01 2023 - Jun 30 2024)
USD47.27b
Calculation for Pinduoduo
EV / Sales current
= 127,362.68 / 47,273.72
2.69
The best tech stocks with low EV/sales worldwide