Enterprise-Value-To-Revenue Multiple - EV/R
- Enterprise-Value-To-Revenue Multiple - EV/R
- 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 well. The EV/R multiple is also often used to determine a company's valuation in the case of a potential acquisition. Other valuation multiples that investors looking at EV/R would likely consider include EV/EBITDA, P/E and P/BV. EV/revenue is most commonly expressed as a number in decimal form followed by an x, as in 2.6x.
Investors should compare EV/R for the company being analyzed to that of other public companies in the industry to get an idea of the company's relative financial health. For example, one electronics store's EV/R multiple should be compared to those of other electronics stores, not to those of food manufacturers or healthcare providers. This is true of any type of ratio analysis. Also, investors should always look at a variety of indicators, as no single indicator can provide an accurate picture of a company's performance.
Investment dictionary.
Academic.
2012.
Look at other dictionaries:
Enterprise content management — (ECM) is a set of technologies used to capture, store, preserve and deliver content and documents and content related to organizational processes. ECM tools and strategies allow the management of an organization s unstructured information,… … Wikipedia
Value network analysis — is a methodology for understanding, using, visualizing, optimizing internal and external value networks and complex economic ecosystems. The methods include visualizing sets of relationships from a dynamic whole systems perspective. Robust… … Wikipedia
Value network — A value network is a business analysis perspective that describes social and technical resources within and between businesses. The nodes in a value network represent people (or roles). The nodes are connected by interactions that represent… … Wikipedia
Business Value — In management, business value is a meaningless buzzword that includes all forms of value that determine the health and well being of the firm in the long run. Business value expands concept of value of the firm beyond economic value (also known… … Wikipedia
Business valuation — is a process and a set of procedures used to estimate the economic value of an owner’s interest in a business. Valuation is used by financial market participants to determine the price they are willing to pay or receive to consummate a sale of a… … Wikipedia
P/E ratio — The P/E ratio (price to earnings ratio) of a stock (also called its earnings multiple, or simply multiple, P/E, or PE ) is a measure of the price paid for a share relative to the annual income or profit earned by the firm per share. [cite web|url … Wikipedia
Valuation (finance) — Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts … Wikipedia
HISTORICAL SURVEY: THE STATE AND ITS ANTECEDENTS (1880–2006) — Introduction It took the new Jewish nation about 70 years to emerge as the State of Israel. The immediate stimulus that initiated the modern return to Zion was the disappointment, in the last quarter of the 19th century, of the expectation that… … Encyclopedia of Judaism
Clear Channel Communications — Not to be confused with clear channel radio stations, a type of AM radio station. This article is about the broadcasting company. For other uses, see Clear channel. CC Media Holdings, Inc. Type Private Industry … Wikipedia
Copy protection — Copy protection, also known as content protection, copy obstruction, copy prevention and copy restriction, refer to techniques used for preventing the reproduction of software, films, music, and other media, usually for copyright reasons.[1]… … Wikipedia
