So I understand Market Cap is share price * shares outstanding, but when valuing a company, should I be comparing its Market Cap to its revenues, or to its net income?

Thanks!

A very common number that people compute is P/E which is share price/net income. There is no real edge in calculating this number and it just tells how expensive earnings are for this company.

So I understand Market Cap is share price * shares outstanding, but when valuing a company, should I be comparing its Market Cap to its revenues, or to its net income?

Thanks!