Definition
Enterprise Value to Revenue – Compares a company's total value (market capitalization plus debt, minus cash) to its top-line revenue, without regard to profitability. Used mainly for growth companies that are still loss-making (where EV/EBITDA or P/E aren't meaningful because earnings are negative), but a high EV/Revenue multiple is only justified if margins are expected to improve substantially in the future — it says nothing on its own about whether that will actually happen. Found In: Income Statement, Balance Sheet, Market Data Formula:
EV/Revenue = (Market Capitalization + Total Debt - Cash) / Total Revenue