Enterprise Value, Revenue, and Cash-Flow Multiples

These pages group enterprise-value, revenue, reserve, and cash-flow multiples used in comparable-company analysis.

In this section

• Cash-Flow Yield and Price-to-Cash-Flow Multiples
  Cash-flow yield, price-to-cash-flow, and owner-earnings terms used in valuation screens.
  • Cash Flow Yield: How Much Cash an Investment Generates Relative to Its Price or Value
    Learn what cash flow yield measures, how it is calculated, and why investors use it to compare cash generation against market value.
  • Free Cash Flow Yield
    Understand free cash flow yield as the amount of free cash flow produced relative to market value or price.
  • Owner Earnings Run Rate: Definition, Calculation, Advantages, and Drawbacks
    Explore the concept of Owner Earnings Run Rate, understand how it is calculated, and evaluate its advantages and drawbacks within financial analysis.
  • Price-to-Cash-Flow Ratio
    Equity valuation multiple comparing share price with cash generation, often used when earnings are noisy or heavily adjusted.
  • Price-to-Free-Cash-Flow: How Much Investors Pay for a Company''s Cash Generation
    Learn what the price-to-free-cash-flow ratio measures, why investors use it, and when it is more useful than earnings-based multiples.
• Enterprise Value and EV Multiples
  Enterprise-value and EV-based multiple terms used in company valuation.
  • Enterprise Value
    Whole-business valuation measure combining equity value with net debt and other claims on the firm.
  • Enterprise Value-to-Sales (EV/Sales): Valuation Relative to Revenue
    Understand EV/Sales, why it is useful for low-profit or early-stage companies, and why revenue quality still matters.
  • Enterprise-Value-to-Revenue (EV/R) Multiple: Meaning and Use
    Learn what the EV/R multiple measures and why investors use it when earnings are weak, volatile, or not yet meaningful.
  • EV/2P Ratio: Comprehensive Guide to Meaning, Calculation, and Application
    This article explains the EV/2P Ratio, its significance in valuing oil and gas companies, how to calculate it, and provides examples and insights into its practical applications.
  • EV/EBITDA: A Core Valuation Multiple for Comparing Operating Businesses
    Learn what EV/EBITDA measures, why analysts use it, and where the multiple helps or misleads.
  • Reserve Replacement Ratio (RRR): A Key Metric in Resource Management
    Reserve Replacement Ratio (RRR) measures the amount of proved reserves added to a company's reserve base relative to the amount produced in a given year. This metric is essential for assessing a company's ability to sustain production levels.
• Revenue, Sales, and Resource Multiples
  Revenue, sales, and resource-reserve multiple terms used in relative valuation.
  • Price-to-Sales (P/S) Ratio: Comprehensive Guide and Calculation Formula
    An in-depth examination of the Price-to-Sales (P/S) Ratio, its formula, significance, and how it aids investors in identifying undervalued stocks for potential investments.
  • Times-Revenue Method: A Comprehensive Guide to Valuing a Company Based on Revenue
    Learn how to value a company by using the times-revenue method, a popular technique that determines the maximum value of a company as a multiple of its actual revenue for a set period.