Revenue Multiple

Definitions

1. A valuation measure expressed as enterprise value or market value divided by revenue, often used for software and growth companies where profit may still be limited. Revenue multiples depend heavily on growth rate, margins, and market sentiment.

   In plain English: A valuation ratio based on how much revenue the company has.

   Example: "The company's revenue multiple compressed as public comps reset across the sector."

Related Terms

• Unit Economics
• Contingent Valuation
• Enterprise Value
• Exit Multiple
• Magic Number Startup
• Market Cap
• CAC Payback
• Quick Ratio
• Rule of 40
• Unlevered
• Valuation Multiple