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Assessing the Valuations of Sportswear Stocks

Sonya Bells
Assessing the Valuations of Sportswear Stocks

In this part of the series, we’ll discuss another key valuation metric—the enterprise-value-to-sales multiple. A higher EV-to-sales multiple indicates that a company is overvalued. To gauge whether these companies are correctly valued, we’ll also look at their respective sales growth.