What is a healthy EV revenue ratio?

Asked by: Emmet Satterfield  |  Last update: April 6, 2026
Score: 4.8/5 (49 votes)

While the measure of a good EV/R multiple is different across companies, it's often between 1x and 3x. EV/R is a numeral with an "x" because it's a multiple, and it expresses the value of a company in proportion to its revenue.

What is a good EV ratio?

Cash and cash equivalents amount to $400,000. The company owes $300,000 on a mortgage and another $100,000 in short-term liabilities. Generally, EV/Sales ratios range between 1 and 3. Anything at or below 1 will be considered a low ratio.

What is a good valuation to revenue ratio?

Understanding Enterprise Value-to-Revenue Multiple (EV/R)

The lower the better, in that, a lower EV/R multiple signals a company is undervalued. Generally used as a valuation multiple, the EV/R is often used during acquisitions. An acquirer will use the EV/R multiple to determine an appropriate fair value.

What is considered a healthy EV EBITDA?

Interpreting EV/EBITDA

Industry averages vary widely, making sector-specific comparisons far more relevant. A ratio below 10 is often considered attractive, but this isn't a hard-and-fast rule.

What is a healthy expense to revenue ratio?

The ideal OER is between 60% and 80% (although the lower it is, the better).

What Is the Enterprise Value-to-Revenue Multiple (EV/R)?

32 related questions found

What is a good cost to revenue ratio?

Aim for a CRR ratio below 1:1, where revenue exceeds costs. Invest in marketing strategies with a proven ROI.

Is 0.75 a good expense ratio?

A good expense ratio, from the investor's viewpoint, is around 0.5% to 0.75% for an actively managed portfolio. An expense ratio greater than 1.5% is considered high.

What is a good EV revenue?

While the measure of a good EV/R multiple is different across companies, it's often between 1x and 3x. EV/R is a numeral with an "x" because it's a multiple, and it expresses the value of a company in proportion to its revenue.

What is the 80% rule for EV?

It's not just a random number; the 80/20 rule is a smart way to maximise your EV's performance. Simply put, the 20-80% rule advises maintaining an electric vehicle battery within the 20% to 80% charge range, promoting better battery longevity. Consider it as the battery's green zone.

What is Apple's EV Ebitda ratio?

As of 2025-01-11, the EV/EBITDA ratio of Apple Inc (AAPL) is 27.1. EV/EBITDA ratio is calculated by dividing the enterprise value by the TTM EBITDA. Apple's latest enterprise value is 3,656,868 mil USD. Apple's TTM EBITDA according to its financial statements is 134,930 mil USD.

What is ideal price to revenue ratio?

What should be the ideal price to sales ratio in your business? A PSR of less than 0.75 is extremely desirable for non-cyclical and technology firms, although equities with a PSR of 0.75-1.5 are regarded as strong buys. Those having a PSR greater than three are deemed high-risk.

What is a good return on revenue ratio?

Large corporations usually aim for a return on revenue of 10-15%. Small businesses, on the other hand, might be happy with a 5-8% ROR. It is important to remember that there is no one-size-fits-all answer to this question as it depends on the individual company and its goals.

What is EV EBITDA ratio?

EV/EBITDA is a ratio that compares a company's Enterprise Value (EV) to its Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA). The EV/EBITDA ratio is commonly used as a valuation metric to compare the relative value of different businesses.

What is a good positive EV?

OS Rating: The OS rating provides a rating for each +EV bet. An OS rating above 20 signifies an exceptional bet. Ratings between 10 and 20 are highly favorable bets. Finally, a rating between 0 and 10 indicates a solid bet.

What is the normal range of EV?

The distance an EV can travel on a single battery charge is known as its “all-electric range.” All-electric vehicles can typically go between 110 and over 300 miles on a single charge.

What is the 20 80 charging rule?

According to this guideline, you should begin charging your iPhone as soon as its battery reaches 20% and end it when it reaches 80%. This method is said to lessen the strain on the battery, increasing its lifespan and preserving its condition over time.

What is the max for EV?

EVs or Effort Values are stats your Pokémon gain from defeating or catching specific Pokémon. Pokémon can gain 510 EVs total, with a max of 252 per stat; 4 EVs rounds out to a one-point increase for a specific stat. By defeating various Pokémon, your Pokémon will gain passive stats.

What is the NEC 80% rule?

If all your EV loads are non-continuous, you wouldn't need to worry about oversubscribing, and you can just size your breakers for 100% of your load. But, if your EV loads are continuous, you need to follow the 80% rule. This states that continuous load must be 20% below the breaker capacity.

What is a low EV revenue?

Conversely, a lower EV/Revenue multiple might suggest that the company is undervalued. For instance, if a company has an EV of $20 billion and its revenue is $5 billion, its EV/Revenue multiple would be four. This means that investors are willing to pay $4 for every dollar of revenue the company generates.

What is the market cap to sales ratio?

The Market Capitalization to Sales Ratio is calculated as the Market Capitalization divided by Total Sales. It indicates how the market is pricing every rupee sale of the company. The lower the Market Cap to Sales ratio, the better it is.

What is the EV earnings ratio?

The EV/EBITDA ratio compares a company's enterprise value to its earnings before interest, taxes, depreciation, and amortization. The price-to-earnings (P/E) ratio—also sometimes known as the price multiple or earnings multiple—measures a company's current share price relative to its per-share earnings.

Is a .11 expense ratio good?

Typically, any expense ratio higher than 1 percent is high and should be avoided.

Is 0.8 expense ratio high?

Is 0.8 expense ratio high? For an actively managed fund, a 0.8% TER is considered relatively low. However, always compare TERs within similar fund categories. An index fund with a 0.8% TER might be considered slightly high compared to others in the same category.

Is .50 a high expense ratio?

Ratios over that are generally considered high. A good ratio is generally viewed as one between 0.5% and 0.75%, balancing cost and value. Note that, because portfolios of actively managed funds must be managed in real time, those funds usually have greater expense ratios than passively managed funds.