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.