Enterprise Value to Revenue (EV/Rev)
Enterprise Value to Revenue (EV/Rev) is a financial metric used to evaluate a company's valuation by comparing its Enterprise Value (EV) to its total Revenue.
Enterprise Value is the total value of a company, including equity, debt, and any other obligations. It is calculated by adding together the market value of the company's outstanding shares, the total value of its debt, and any cash or cash equivalents it holds.
Revenue, on the other hand, is the total amount of money a company generates from sales of its products or services.
The EV/Rev ratio helps assess a company's valuation relative to its revenue. A lower ratio indicates that the company may be undervalued, while a higher ratio may suggest that the company is overvalued. It is important to note that this metric should be used in conjunction with other financial ratios and metrics to make informed investment decisions.
Additional Details
Metric Name | Type | Default Period Type |
---|---|---|
ev_to_revenue | fin_metric | FY |
Formatting Details
Data Format | Display Format | Unit |
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float | number | multiple |