Online Business Valuation Multiples Explained

Use multiples as market shorthand, not as a universal pricing formula.

What a multiple does

A multiple translates an earnings or revenue measure into an indicated enterprise or asset value.

Growth, size, concentration, recurring revenue, margins, defensibility and buyer demand all influence the range.

A revenue multiple and an earnings multiple describe different economics and should not be compared casually.

Comparable sales are useful when they are genuinely comparable. Avoid treating one public transaction as a rule for every business.

Use live listings as market evidence, then verify each deal independently.

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