An EV/revenue of 1.5x means what about a company's valuation?

When a company's valuation is expressed as an EV/revenue multiple of 1.5x, it indicates that the enterprise value (EV) of the company is 1.5 times its total revenue. This means that for every dollar of revenue that the company generates, its total enterprise value is $1.50.

This metric is commonly used in financial analysis to assess the relative value of a company based on its revenue generation capability, allowing investors to compare valuations across firms within the same industry or sector regardless of their size. A higher multiple may suggest that the market has higher expectations for growth or profitability relative to peers. In this context, the choice accurately reflects the meaning of the EV/revenue multiple, establishing a clear link between revenue and valuation.

The other choices relate to aspects of the company's performance or figures that do not directly correspond to the interpretation of the EV/revenue ratio, such as specific amounts for revenue or earnings, which are not inherently implied by the ratio itself.