Multiples Method
The multiples method estimates enterprise value by applying an appropriate valuation multiple to a measure such as EBITDA or revenue.
Mittelstandswert uses EBITDA as its primary method. When suitable data is available, the revenue method provides a comparison. If EBITDA is zero or negative, revenue may become the primary basis.
Sector multiples are adjusted for company size. The EBITDA method also considers earnings trends, owner dependence, and recurring revenue. Applying the multiples to the company’s figures produces an indicative value range. Specific synergies, assets, and transaction terms require separate review. See also Multiple.
Related terms
The multiples method estimates enterprise value by applying an appropriate valuation multiple to a measure such as EBITDA or revenue.
Related terms