EV/Revenue — Enterprise Value to Revenue

Definition: Valuation multiple used when a company has no meaningful profit yet — common in early-stage SaaS and growth tech. High EV/Revenue multiples imply the market is pricing in strong future margins.

Example

In board meetings, you'll often hear something like: "Let's pull the latest EV/Revenue numbers before we make a call" — shorthand for enterprise value to revenue.

When you'll hear it

EV/Revenue shows up most often in board meetings, quarterly business reviews, and strategy off-sites. When someone uses it, they're usually referring to enterprise value to revenue — and they expect the room to already know what that means.

FAQs

What does EV/Revenue stand for?

EV/Revenue stands for Enterprise Value to Revenue.

What does EV/Revenue mean in business and finance?

Valuation multiple used when a company has no meaningful profit yet — common in early-stage SaaS and growth tech. High EV/Revenue multiples imply the market is pricing in strong future margins.

Where will I hear EV/Revenue used at work?

EV/Revenue comes up most often in board meetings, quarterly business reviews, and strategy off-sites. It's used as shorthand for enterprise value to revenue, so people assume you already know the term.

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