This ratio represents how many times market effectively pays the turnover of the year. In other words, this ratio shows if the capital employed is efficiently used to generate sufficient sales volume and revenue to maximise profitability.

Forecast EV/Net Sales Multiples are calculated as Current EV (last close market capitalization + last published Net Debt) divided by Net Sales for the fiscal period.
Historical EV/Net Sales Multiple for a given Fiscal Period is calculated as EV at Fiscal Period End Date divided by reported Net Sales for the fiscal period.

This ratio is often a better indicator of the value of a company than the Price to Sales Ratio (PSR) which only uses the company's market cap for the numerator.