oboloo Glossary

Finance Multiples

oboloo Glossary

Finance Multiples

Finance multiples is a term used to describe financial metrics that are based on a company’s income statement, cash flow statement, and balance sheet. They are used to compare companies of similar size and industry in order to evaluate their financial health. Commonly used finance multiples include enterprise value-to-sales ratio, price-to-earnings (P/E) ratio, price-to-book (P/B) ratio, return-on-investment (ROI), and debt-to-equity (D/E) ratio. By assessing these metrics, potential investors can determine the financial strength or weaknesses of an organization and make informed decisions when selecting investments.