When would you use EV/Revenue instead of EV/EBITDA as your primary valuation multiple?

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IBPrep · Accepted Answer

EV/Revenue makes sense when a company has negative or near-zero EBITDA, early-stage SaaS, pre-profitability growth businesses, or any company where one-time charges distort EBITDA. It's also the right choice in industries where revenue growth is the primary value driver.

When would you use EV/Revenue instead of EV/EBITDA as your primary valuation multiple?

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When would you use EV/Revenue