A business’s value expressed as a multiple of its EBITDA.
Small main-street businesses often trade at 2–4× EBITDA; strong mid-market companies 5–8×; premium software far higher. Growth, margins, and owner-independence move the multiple.
Example: $400,000 EBITDA × 3.5 = $1.4M enterprise value.
FAQ
What is EBITDA Multiple in simple terms?
Small main-street businesses often trade at 2–4× EBITDA; strong mid-market companies 5–8×; premium software far higher. Growth, margins, and owner-independence move the multiple.