EBITDA multiple

The EBITDA multiple is the primary measure in this method; the revenue multiple is only a cross-check. Applied to EBITDA, the multiple gives enterprise value: the worth of the operating business before debt and cash are settled. A net-debt bridge then carries that figure to equity value, what the owner actually receives for the shares.

The starting multiple comes from the sector, not the company. The band is anchored to Damodaran's listed-company EV/EBITDA series and stepped down by a DACH discount we derive, because privately held DACH shares do not change hands as freely as listed equity. Size class then scales that sector band.

Three qualities shift where a given company sits inside the band:
- EBITDA trend: rising earnings earn a higher multiple than a flat or declining line.
- Owner dependence: a business that runs without its owner at the centre carries more value than one built around a single person.
- Recurring-revenue share: income that repeats each year is worth more than revenue won deal by deal.

The multiple is a factor, not a single figure. What it produces is an indicative range for the company today. What the business ultimately sells for is a separate number, settled later by a buyer and a seller once diligence and negotiation are done.