klipfolio image

3X

arrow-right icon

0.19

vs previous period

Enterprise Value to Revenue Multiple (EV/R)

Date created: Aug 26, 2021  •   Last updated: Feb 1, 2022

What is Enterprise Value to Revenue Multiple?

Enterprise Value to Revenue Multiple (EV/R) is a financial ratio used in company valuation that compares stock value of a company to its revenue for a given time period. EV/R is often used to evaluate a company before acquisition.

Alternate names: EV/Revenue Multiple, EV/R Multiple

Enterprise Value to Revenue Multiple Formula

ƒ Sum(Enterprise Value) / Sum(Revenue)

How to calculate Enterprise Value to Revenue Multiple

If a company’s Enterprise Value (EV) is $50M and revenue is $35M, then the company’s EV/R Multiple is 1.4X.

Start tracking your Enterprise Value to Revenue Multiple data

Use Klipfolio PowerMetrics, our free analytics tool, to monitor your data.

Get PowerMetrics Free
Klipfolio dashboard image

What is a good Enterprise Value to Revenue Multiple benchmark?

In general, a good EV/R Multiple is between 1x and 3x. However, public SaaS companies range between 6X and 12X EV/R.

Enterprise Value to Revenue Multiple benchmarks

Public SaaS EV/R Benchmark

Public SaaS EV/R Benchmark
Finerva, 2021
arrow-right icon
arrow-right icon

How to visualize Enterprise Value to Revenue Multiple?

The EV/R Multiple is usually expressed as a single number. For example, your EV/R might be 1.5X. The best way to visualize this metric is with a summary chart. Take a look at the example to see what your EV/R data might look like when you start to track it on a dashboard:

Enterprise Value to Revenue Multiple visualization example

klipfolio image

Enterprise Value to Revenue Multiple

3X

arrow-right icon

0.19

vs previous period

Summary Chart

Here's an example of how to visualize your current Enterprise Value to Revenue Multiple data in comparison to a previous time period or date range.
arrow-right icon
arrow-right icon

Enterprise Value to Revenue Multiple

2.55X

arrow-right icon

0.19

vs previous period

Summary Chart

Here's an example of how to visualize your current Enterprise Value to Revenue Multiple data in comparison to a previous time period or date range.

More about Enterprise Value to Revenue Multiple

EV/R Multiple is used to value a company before a potential takeover, evaluate if the stock rice of a company is fair, and to compare companies in the same industry. It is calculated by dividing enterprise value by revenue and is usually expressed as a decimal number or multiple. This metric can be used to look at how well a company generates revenue and can be used even if the company is not yet profitable.

Recommended resources related to Enterprise Value to Revenue Multiple

How to value SaaS companies