Enterprise value to revenue (EV/Revenue)
What a buyer of the whole company pays for one unit of annual revenue.
It survives loss-making years, when every earnings-based multiple stops working.
How it is computed here
(Market capitalisation + total debt - cash) / revenue
Combines more than one basis. See the note. The pipeline prefers the data vendor's published trailing-twelve-month ratio when one exists, and falls back to recomputing from the latest filed fiscal year when it does not. Those two are different measurements: the vendor figure puts twelve months of flow over the most recent quarterly balance sheet. The source trail on each figure names which path produced it. Filed under value. Neither a high nor a low reading is good on its own, so it is never coloured as one.
No published threshold exists for this figure, so this page prints none. Read it against the company's own history and its peers instead.
When it misleads
- Ignores profitability entirely; only useful inside one industry.
- There is no cross-industry threshold worth printing. The peer percentile against companies in the same industry is the only defensible reading.
Not meaningful for banks, insurers: the product prints n/m with the reason rather than a number for them.
Questions
How is enterprise value to revenue calculated?
(Market capitalisation + total debt - cash) / revenue. Combines more than one basis. See the note. The pipeline prefers the data vendor's published trailing-twelve-month ratio when one exists, and falls back to recomputing from the latest filed fiscal year when it does not. Those two are different measurements: the vendor figure puts twelve months of flow over the most recent quarterly balance sheet. The source trail on each figure names which path produced it.
What does enterprise value to revenue tell a value investor?
It survives loss-making years, when every earnings-based multiple stops working.
When does enterprise value to revenue mislead?
Ignores profitability entirely; only useful inside one industry. There is no cross-industry threshold worth printing. The peer percentile against companies in the same industry is the only defensible reading.