by Ekrem Duman | Jun 2, 2026 | Growth & Valuation, KPIs & Metrics
⚡ TL;DREV/EBITDA divides a company’s enterprise value by its EBITDA. Enterprise value is market cap plus debt minus cash — the cost to buy the whole business. A multiple of 10 means the business is valued at ten times its annual operating cash earnings. Because...
by Ekrem Duman | Jun 2, 2026 | Growth & Valuation, KPIs & Metrics
⚡ TL;DRThe price-to-earnings (P/E) ratio is a company’s share price divided by its earnings per share. A P/E of 20 means investors pay $20 for every $1 of annual earnings. It is the most widely used valuation multiple, reflecting how much the market will pay for...
by Ekrem Duman | Jun 2, 2026 | Growth & Valuation, KPIs & Metrics
⚡ TL;DRCompound annual growth rate (CAGR) is the smoothed annual rate at which a value grows over multiple years, as if it grew steadily each year. CAGR = (ending value ÷ beginning value)^(1/years) − 1. It cuts through volatile year-to-year swings to show the...
by Ekrem Duman | Jun 2, 2026 | Growth & Valuation, KPIs & Metrics
⚡ TL;DRRevenue growth rate measures how fast sales increase over a period: (current revenue − prior revenue) ÷ prior revenue × 100. A 20% growth rate means sales rose a fifth year-over-year. It is the headline measure of business momentum, but raw growth means little...
by Ekrem Duman | Jun 1, 2026 | Efficiency & Operations, KPIs & Metrics
⚡ TL;DROperating leverage measures how sensitive a company’s operating profit is to changes in sales, driven by its mix of fixed and variable costs. High fixed costs mean high operating leverage: profits soar when sales rise but collapse when sales fall. The...
by Ekrem Duman | Jun 1, 2026 | Efficiency & Operations, KPIs & Metrics
⚡ TL;DRThe operating cycle is the time from buying inventory to collecting cash from its sale: days inventory outstanding plus days sales outstanding. Subtracting days payable outstanding gives the cash conversion cycle. A shorter operating cycle means cash returns...
