This is a question often asked, and is a difficult one to answer. To help visualise the relationship between Enterprise Value (EV), Revenue (ACMR) and the commonly used multiple, EV/Revenue we have created the following charts comparing online companies.
NB: ACMR = Annualised Committed Monthly Revenue, which is the most recent monthly revenues annualised.
Understanding the charts:
Along with each company’s position on the chart representing EV/Revenue multiple in relation to Revenue, the size of the bubble represents the company’s overall EV.
Chart 1 – Low to Mid range ACMR companies
Chart 2 – High ACMR companies