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What Is the EBITDA Multiple?
The EV/EBITDA multiple (also called the EBITDA multiple) is the most common valuation metric in M&A and private equity. It expresses enterprise value as a multiple of EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization).
Enterprise Value = EBITDA × EV/EBITDA Multiple
Industry EBITDA Multiple Benchmarks (2024)
| Sector | Typical EV/EBITDA |
|---|---|
| SaaS / High-growth tech | 15–30× |
| B2B software (mature) | 8–15× |
| Manufacturing | 5–8× |
| Retail | 4–7× |
| Services / consulting | 4–7× |
| Distribution | 5–8× |
Enterprise Value vs. Equity Value
Enterprise Value includes debt holders. Equity Value is what shareholders actually receive:
Equity Value = EV - Total Debt + Cash
EBITDA vs. Revenue Multiples
Revenue multiples (EV/Revenue) are used when EBITDA is negative or near zero, common in high-growth SaaS. Compare both to bracket your valuation range.