top of page

Enterprise-Value-to-Revenue Multiple (EV/R)

The enterprise value-to-revenue multiple (EV/R) is a measure of the value of a stock that compares a company's enterprise value to its revenue. EV/R is one of several fundamental indicators that investors use to determine whether a stock is priced fairly. The EV/R multiple is also often used to determine a company's valuation in the case of a potential acquisition. It’s also called the enterprise value-to-sales multiple.

How to Calculate Enterprise-Value-to-Revenue Multiple (EV/R)

The enterprise value-to-revenue (EV/R) is easily calculated by taking the enterprise value of the company and dividing it by the company's revenue.

EV/R = Enterprise Value / Revenue


  • Enterprise Value = MC + D − CC

  • MC = Market capitalization

  • D = Debt

  • CC = Cash and cash equivalents

Source: Investopedia, Enterprise-Value-to-Revenue Multiple (EV/R): Definition, accessed 25 December 2023, <>

5 views0 comments

Recent Posts

See All


Beta (β) is a measure of the volatility-or systematic risk-of a security or portfolio compared to the market as a whole (usually the S&P 500). For beta to provide any useful insight, the market that i

Earnings Surprise

An earnings surprise occurs when a company's reported quarterly or annual profits are above or below analysts' expectations. These analysts, who work for a variety of financial firms and reporting age

Earnings Per Share (EPS)

Earnings per share (EPS) is calculated as a company's profit divided by the outstanding shares of its common stock. The resulting number serves as an indicator of a company's profitability. It is comm


bottom of page