# Gross revenue multiple

A price expressed as a multiple of sales rather than of earnings.

It is the crudest of the common multiples and the one most often quoted to a first-time buyer, because it needs no adjustment and hides everything that matters. Two businesses at the same revenue multiple can differ by half in what they actually pay an owner. Use it as a sanity check against the earnings multiple you are really underwriting, never as the price, and be suspicious when a listing leads with it, since revenue survives a weak year looking almost unchanged while earnings do not.

In numbers: A 0.6x revenue multiple on $2M of sales is $1.2M, which is 4x earnings at a 15% margin and 8x at 7.5%.

Source: https://searchspheresource.com/glossary/gross-revenue-multiple
Not dated: A definition is editorial: what a term means, why it matters, and an example. None of it reads a source that can go stale, so there is no date to take and a stamped one would be the build time wearing a costume.

Site index for machines: https://searchspheresource.com/llms.txt