Valuation multiples refer to a way of measuring the value of a company or an asset by comparing it to similar companies in the same industry. It involves taking a ratio of a company's market value or financial metrics (such as earnings, sales, or book value) to its relevant measures (such as price, revenue, or equity). These multiples help investors or analysts understand how the company is valued in relation to others, and can be used to estimate its worth or to make investment decisions.
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