A multiple of cash flows is usually a better indicator of value than a multiplier of revenues ~

A company with $100 in revenue and $$50 in expenses has $100 in revenue and $50 in cash flow. We just assume no depreciation or those other complex accounting functions for both.

A company with $100 in revenue and $99 in expenses has $100 in revenue and $1 in cash flow.

Which company is worth more money?? Using a multiplier of revenue values both companies evenly. Using a multiplier of cash flows gives a more accurate value. It could be 4x or 100x, but usually cash flows is a better tool for appraisal.