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 , what does that number actually mean?“ Answer often given in textbooks: How valuable a