Enterprise value to revenue multiple (EV/Revenue) is a valuation metric for valuing a company. It is usually used to value the business at its early stage or high growth stage with low or negative earnings. The formula for calculating the EV/Revenue multiple is as follows:

EV/Revenue Multiple = (Equity Value + All Debt + Preferred Shares - Cash and Cash Equivalents) / Total Revenue

For early-stage companies (which usually operate at a loss) and high growth companies (which operate at breakeven), they are likely to have a negative EV/EBITDA multiple (when EBITDA is negative) or huge multiple (when EBITDA is barely positive). These multiples are not useful for determining the company's value, and therefore using an EV/Revenue multiple would be more appropriate for these businesses.