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MarginGraph

How do I find the multiple for my industry?

Published sector averages are drawn from transactions far larger than most SMEs. Confirm the size band before using any comparable — and if you cannot find it, do not use the figure.

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Sector averages are freely available and mostly misleading, because published transactions skew toward deals large enough to be reported. A "6× for logistics" figure is usually drawn from businesses at €5M of EBITDA, not €400,000.

What makes a comparable usable

  • Same size band — within roughly half to double your earnings
  • Same buyer type — an individual buyer prices differently from a fund
  • Recent — multiples move with interest rates and credit availability
  • Known earnings basis — SDE and EBITDA multiples are not interchangeable
  • Enough detail to know whether it was a share or asset transaction

A comparable failing any of these is not a weak data point. It is a different market.

Where to look

Broker-published transaction databases for your country, industry association reports, and — where available — the disclosed multiples in listed company acquisitions of businesses like yours. Treat all of them as the midpoint of a wide distribution rather than as your number.

What to do with the average once you have it

Place yourself inside the distribution using the four drivers: size, growth, customer concentration and owner dependence. That placement is worth more than the average itself, and it is the part a buyer will actually argue about.

EBITDA multiple explained covers how far each driver moves you; common valuation mistakes covers what happens when the size band is ignored.

Find out what your business is worth

Send your P&L and balance sheet. We read them and show you what we found before anything is for sale.

Guide3 min

EBITDA multiple explained

What actually sets your multiple — size, growth, concentration and owner dependence — and why the sector average you found online is the least useful number in the calculation.

Guide3 min

Common valuation mistakes

Nine errors that show up in almost every first valuation, what each one costs in euros, and the check that catches it before a buyer does.

Answer1 min

What is an ARR multiple?

Annual recurring revenue times a figure between 3 and 8, used for subscription software. Churn and net revenue retention decide where inside that range you land.