Valuation Multiple

Definitions

1. A ratio used to value a company by comparing value to a financial metric such as revenue, EBITDA, or earnings. Valuation multiples help benchmark companies, but they change meaningfully with market sentiment and business quality.

   In plain English: A ratio used to estimate company value from a key financial metric.

   Example: "The valuation multiple fell as comparable public software companies repriced lower."

Related Terms

• Unicorn
• Contingent Valuation
• Enterprise Value
• Exit Multiple
• Future Valuation
• Market Cap
• Revenue Multiple
• Unlevered