EBITDA Multiple
The number you multiply your EBITDA by to value what the business earns. Growth, steady earnings and a business that runs without the owner all push the multiple up. A seller wants it higher and a buyer lower. A business with little or no profit gets little from it, and is valued on its strategic value and its assets instead.
- How it's worked out
- Earnings part of Enterprise Value / EBITDA, when EBITDA is above zero
- Which way is better
- Read it in contextNeither higher nor lower is better on its own. Read it alongside the measures around it.
Written by Mandy Walker, founder of Focus on Cash. Updated October 2026. This explanation comes from the glossary inside Focus on Cash, so it matches the words you see in the app.
Related measures
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