A market multiple is a financial measure used to determine the value of a business. It compares the value of a company’s stock with its underlying financial performance metrics, such as revenue and earnings. In essence, it is used to calculate the company’s market worth relative to its economic value. Market multiples are essential for investors when it comes to evaluating stocks and making investment decisions. By using this method, investors obtain a true insight into how much the stock market values a particular equity and how the performance of that equity compares to others in its field.