Question

What is the mean 2019E EV/Revenue multiple in the Online Direct Sales comps group in 2019?

a) 1.1x
b) 1.2x
c) 0.8x
d) 0.6x

Answer 1

The question is not clear and complete.

Let me explain how you can calculate Enterprise Value (EV) to Revenue Multiple

Step-by-step explanation:

A Enterprise Value (EV) to Revenue Multiple is used to value a business by dividing its enterprise value by its annual revenue. The formula to calculate the Enterprise Value (EV) to Revenue Multiple is EV/Revenue

EV = Enterprise Value

EV can be denoted as (Equity Value + All Debt + Preferred Shares) – (Cash and Equivalents)

While Revenue = Total Annual Revenue

This can be calculated when we have a share price, shares outstanding, debt, and cash or its equivalence.