Valuation method
EBITDA multiple
Sector-calibrated with live Upswitch Index data.
What it is
The EBITDA multiple method calculates Enterprise Value by multiplying normalized EBITDA by a sector-specific multiple. This multiple reflects what buyers in your sector are willing to pay per euro of earnings before interest, taxes, depreciation, and amortization.
When to use it
The standard method for profitable SMEs with stable, predictable cash flows. Particularly suited for manufacturing, distribution, professional services, and trading companies with EBITDA above €200K. Advisors and corporate finance professionals use it daily in M&A, refinancing, and recurring valuations. The market often expects a credible multiple on normalized earnings here.
How Upswitch applies this method
Upswitch uses recent SME transaction references and published sector benchmarks from the Upswitch Index (European markets, per country). EBITDA is normalized so one-off costs, owner-related expenses, and non-operational items do not distort the picture. You can manually adjust the multiple with justification in the audit trail.
Data and benchmarks
Sector multiples and transaction benchmarks are calibrated against the Upswitch Index, our continuously updated European SME reference dataset (per-country filter).
Explore the Upswitch SME Index→Sectors where this method is the headline
Live Upswitch Index data per sector. Click through to the multiples band that applies to your case.
Manufacturing
Stable EBITDA + clear sector benchmarks make EBITDA-multiple the default headline.
See multiples on Index →
Wholesale & distribution
Margin compression risk lives in the multiple itself. Most informative method.
See multiples on Index →
B2B services
EBITDA-multiple captures operating leverage when retainer recurring revenue is meaningful.
See multiples on Index →
Construction & installation
Project-driven EBITDA on a 3 to 5 year average base provides the cleanest waardebandbreedte.
See multiples on Index →
Healthcare practices
Recurring patient revenue + regulated multiples make EBITDA-multiple defensible to peers.
See multiples on Index →
In your professional report
Each method appears as a dedicated section in your branded PDF, with a full audit trail for every normalisation and adjustment.
| Section | Included |
|---|---|
| EBITDA multiple | Value and method summary |
| Audit trail | Per adjustment, fully traceable |
How it compares
| Method | Best for | Data needed |
|---|---|---|
| DCF | Growth companies | Cash flow projections |
| SDE | Micro-SMEs (< €1M) | Owner compensation + earnings |
| Revenue multiple | Low-margin / growth | Revenue + growth rate |
Related comparisons
EBITDA multiple vs. DCF
Two strong methods for advisors. The right choice depends on stability, growth trajectory, and the story you need to defend.
See comparison→
EBITDA multiple vs. SDE
The difference between valuing a larger SME and valuing an owner-led micro business.
See comparison→
Adjusted NAV vs. EBITDA multiple
The choice between intrinsic asset value and earnings-driven market value.
See comparison→
Frequently asked questions
On the Free plan you can run up to three valuations per year using the methods enabled for your workspace. Starter unlocks all ten valuation methods, unlimited valuations, downloadable branded reports without watermark, and live European SME multiples from the Upswitch Index.
Apply EBITDA multiple to your sector
Real-world examples of EBITDA multiple in action. Sector-specific multiples, normalisations and worked examples on the Upswitch Index.
Accounting & Finance
Professional services and consulting
AI / Machine Learning
ICT, software and media
Amusement Services
Arts, entertainment and recreation
Appliance Repair
Personal and other services
Aquaculture / Fish Farm
Agriculture, forestry and fishing
Art Classes
Education and training
Auto Body Shop
Wholesale and retail trade
Bakery
Manufacturing and industrial production
Bar / Pub
Hospitality, food service and accommodation