What Is A Valuation Multiple

This lesson was prompted by a question that came in from a reader and student of our courses the other day: When you divide Enterprise Value by Revenue (EV, Revenue), or Price Per Share by Earnings Per Share (P, E), what does that actually mean By Financial Modeling Training And Career Resources For Aspiring Investment Bankers In other words, if Enterprise Value, Revenue is 5. 8x, what does that number actually mean Answer often given in textbooks: How valuable a