Multiple
A valuation multiple is applied to a financial measure, such as EBITDA or revenue, to estimate enterprise value.
An EBITDA multiple of 5x means that enterprise value is calculated at five times the EBITDA used. Whether the multiple is appropriate depends on factors including the business model, company size, and comparability of the data.
Mittelstandswert calculates a sector range and accounts for company size and selected business characteristics. The range provides an initial estimate. See also Multiples Method.
Example
Adjusted EBITDA of EUR 1.0 million and a multiple of 5.5x give an enterprise value of EUR 5.5 million.
Related terms
A valuation multiple is applied to a financial measure, such as EBITDA or revenue, to estimate enterprise value.
Related terms