Skip to content
human
renaissance
Glossary

Fig. 01 · Glossary

Valuation Multiple

Also known as Multiple, EV/EBITDA, EV/Revenue

Definition

A valuation multiple expresses enterprise value relative to a financial metric such as EBITDA, revenue, ARR, or gross profit. The multiple reflects growth, margin, revenue quality, retention, market position, transferability, risk, and buyer demand.

Multiple is the output, not the strategy. Founders often chase the headline comparable without fixing the operating risks that determine whether a buyer believes the company deserves it.

The controllable levers are usually revenue quality, margin durability, customer concentration, management depth, technical debt, and transferability.

Where this connects

Related term
ARR and MRR
Related term
EBITDA
Related term
Normalized EBITDA
Applied in
Unit Economics
Applied in
Financial Infrastructure
Applied in
Exit Readiness

Human Renaissance glossary · operator-grade definitions · Research methodology

A panelled door ajar at night spilling warm lamplight across a herringbone floor, the corner of a worked desk visible through the gap.

Start here

When the term becomes a board question

Turn the concept into owners and a board-ready cadence. A 14-day diagnostic. No retainer until we agree on the work.

Request a diagnostic Back to the glossary