Revenue Multiple
Definition
A valuation metric expressing enterprise value as a multiple of annual revenue, widely applied to growth-stage companies with limited profitability where earnings-based multiples are uninformative. Revenue multiples are positively correlated with revenue growth rate, gross margin, and net revenue retention. SaaS businesses with strong unit economics typically trade at revenue multiples significantly above those observed in lower-growth, lower-margin sectors.
Related Terms
Related FAQ
What valuation should I expect for my Series A?
Series A valuations vary widely but typically range from 2-10x Series Seed valuation. Stage, metrics, market, and team drive the multiple — 20-50x revenue (for SaaS) or 5-10x revenue (for marketplaces) are common benchmarks.
Read full answer →What are SaaS-specific valuation considerations?
SaaS valuations emphasise metrics-driven analysis: revenue growth, MRR/ARR, churn, NRR, unit economics (CAC, LTV, payback), and rule-of-40 score drive multiples far more than EBITDA.
Read full answer →How do intangible assets affect company valuation?
Intangible assets typically represent 70-90% of enterprise value in modern companies, directly influencing revenue multiples, EBITDA margins, and acquisition premiums.
Read full answer →Put this knowledge to work
Use Opagio's free tools to measure and grow the intangible assets that drive your business value.