Knowing your multiple is the starting point for determining your company’s market value. Find out the multiple range that applies to your industry.
Select the ANZSIC Division that most closely describes your business.
Select the band that best represents your most recent full year.
| Metric | Low | Middle | Upper |
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Earnings Before Interest, Tax, Depreciation and Amortisation. The most commonly used metric in SME valuations — it measures operating profitability independent of capital structure.
A multiple applied to total annual revenue. Used as a cross-check or when profitability isn't the primary driver, such as in early-stage or high-growth businesses.
Post-tax profit. Reflects actual earnings available to owners after all expenses. Useful for cross-referencing with EBITDA.
Book value of business assets. Often used for asset-heavy businesses — such as manufacturing or property — where the underlying asset base drives a significant portion of value.
Knowing your multiple is the starting point for determining your company's market value. This is achieved by multiplying a transactions-based multiple by a performance measure like revenue or EBITDA. Knowing both elements is critical when calculating an accurate business valuation.
A multiple is not a single number. Determining where your business fits within the range can make a significant difference to enterprise value — often measured in millions of dollars. There are over 50 financial and non-financial factors that help determine where you sit within your range. Understanding and improving those factors is where the real value is created.
Stories from the Buy Grow Sell podcast
A professional services founder was the lead salesperson, reviewer of every contract, and the person every deal ran through. He spent two years deliberately removing himself — formal sales training for his team, recurring revenue streams to reduce project dependency. Within six months his team told him they didn’t need him in deals anymore. He sold to KPMG for 12× EBITDA with no earn-out — exceptional for professional services, where most firms trade well below that.
Gabriela Isturiz engineered her SaaS legal tech company to a specific set of metrics before approaching buyers: 99% recurring revenue, 102% net retention, 93% gross margins. Her CTO’s job included saying no to consulting work that would dilute the recurring base. Buyers in her vertical paid 5.5–10× ARR for well-run companies. She sold at the top of that range to a Fortune 500 acquirer.
The range provided is based on your industry and revenue band. With the help of our advisors and our proprietary framework VALUE360™ — we help you improve your multiple and drive up your valuation.
Disclaimer
This tool is provided for general informational and educational purposes only and does not constitute financial, legal, or business advice. The outputs generated are indicative in nature and should not be relied upon as a substitute for professional advice or a formal business valuation.
The data and assumptions underpinning this tool have been compiled from a range of sources over time and are intended to reflect general market observations. While reasonable care has been taken in its development, no representation or warranty is made as to the accuracy, completeness, or relevance of the information for any specific business or circumstance.
Business valuations are inherently subjective and can vary significantly based on a wide range of factors, including but not limited to industry dynamics, individual business characteristics, buyer appetite, deal structure, and prevailing macroeconomic conditions. These factors are often outside the control of the business owner and may change rapidly.
Accordingly, no liability is accepted for any loss or damage arising from reliance on this tool or its outputs.
For a more accurate and current assessment of value, business owners should seek advice from a qualified professional who is actively involved in the sale of businesses. An experienced advisor can provide insight into real-time market conditions, current trading cycles within your industry, and how your business is likely to be received by buyers in today’s environment.