Industry insiders, buyers and sellers sometimes talk about multiples of revenue as a metric of company value. You can take any price and divide it by the annual revenue of a business and obtain a revenue multiple or fraction thereof. A $1 million sale price divided by $2,5 million in annual revenue equals a 0.40x revenue multiple. In some high growth technology companies people talk about a multiple such as 2x or 3x Revenue = Company value. But revenue is a very poor indicat