Valuation Multiple
Definition
A ratio used to estimate the value of a company by comparing its market value or enterprise value to a financial metric such as revenue, EBITDA, or earnings. Higher multiples typically reflect stronger growth prospects, margin quality, and intangible asset positions.
Related Terms
Related FAQ
How do intangible assets interact with valuation multiples?
Companies with strong intangible assets (brands, IP, data moats) command higher valuation multiples—e.g., 8-10x revenue versus 2-3x for commodity businesses.
Read full answer →What is a multiple (EV/Revenue, EV/EBITDA) and how do I choose the right one?
Multiples are shortcuts: Enterprise Value / Revenue (EV/Revenue) for growth-stage, EV/EBITDA for profitable companies, EV/Users for early-stage. Choose based on whether your business is profitable.
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.