Revenue Multiple
Valuation metric expressing how many times annual revenue investors are paying for a protocol.
In-Depth Explanation
Revenue multiple = FDV (or Market Cap) / Annualized Revenue. A 50x multiple means investors pay $50 for every $1 of annual revenue. Lower multiples suggest relative undervaluation; higher multiples reflect growth expectations. Compare across similar protocols, adjust for growth rates, and be clear whether using FDV vs market cap.
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Related Terms
Price to Sales Ratio
P/SValuation metric comparing market cap (or FDV) to annualized revenue.
Fully Diluted Valuation
FDVThe theoretical market cap if all tokens (including locked, unvested, and unissued) were in circulation.
Protocol Revenue
Fees collected by a protocol that accrue to the protocol itself or its tokenholders, rather than to liquidity providers or other participants.
More in Valuation
View all →Market Capitalization
Market CapThe total value of a token's circulating supply, calculated as price × circulating supply.
Fully Diluted Valuation
FDVThe theoretical market cap if all tokens (including locked, unvested, and unissued) were in circulation.
Price to Sales Ratio
P/SValuation metric comparing market cap (or FDV) to annualized revenue.
Price to Fees Ratio
P/FValuation metric comparing market cap (or FDV) to total fees generated, regardless of fee distribution.