Multiple company valuation 2023
Current industry multiples 2023: Revenue multiples, EBIT multiples and EBITDA multiples for company valuation for different countries and industries. Based on NIMBO’s unique dataset of hundreds of observed offers.
Data last updated: June 1, 2023
On this page: NIMBO polls over a thousand small and medium-sized companies every month for the purchase offers they have received and calculates EBIT multiples, EBITDA multiples and revenue multiples. This means that NIMBO has the most up-to-date database of valuation multiples. We publish these multiples every month for individual countries. More information on valuation multiples and their application can be found below.
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Germany
2-5 employees Test B
| industry | EBITC Multiple | EBIT multiples | EBITDA multiples | Sales Multiple |
|---|---|---|---|---|
| Software / IT Services | 3.1 | 6 | 5.7 | 1.1 |
| Manufacturing industry | 2.8 | 5 | 4.7 | 0.8 |
| Services | 2.8 | 5.3 | 5.1 | 0.9 |
| Food and beverage service activities | 2.5 | 4.4 | 4.1 | 0.7 |
| trade | 2.1 | 3.6 | 3.4 | 0.6 |
| craft / construction | 1.6 | 2.9 | 2.7 | 0.4 |
6-25 employees
| industry | EBITC Multiple | EBIT multiples | EBITDA multiples | Sales Multiple |
|---|---|---|---|---|
| Software / IT Services | 4.3 | 7.2 | 6.7 | 1 |
| Manufacturing industry | 3.9 | 6 | 5.5 | 0.8 |
| Services | 3.9 | 6.4 | 6 | 0.8 |
| Food and beverage service activities | 3.5 | 5.4 | 4.7 | 0.7 |
| trade | 2.9 | 4.3 | 4.1 | 0.5 |
| craft / construction | 2.2 | 3.5 | 3.3 | 0.4 |
26 – 99 employees
| industry | EBITC Multiple | EBIT multiples | EBITDA multiples | Sales Multiple |
|---|---|---|---|---|
| Software / IT Services | 5.4 | 7.4 | 6.8 | 0.8 |
| Manufacturing industry | 4.9 | 6.2 | 5.5 | 0.6 |
| Services | 4.9 | 6.6 | 6.1 | 0.7 |
| Food and beverage service activities | 4.5 | 5.5 | 4.8 | 0.6 |
| trade | 3.7 | 4.4 | 4.2 | 0.5 |
| craft / construction | 2.8 | 3.6 | 3.4 | 0.4 |
Development of EBITC multiples over time (6-25 employees)
⬤ IT / Software ⬤ Manufacturing industry ⬤ Services. ⬤ Gastronomy ⬤ Trade ⬤ Craft & Construction
France
2-5 employees Test B
| industry | EBITC Multiple | EBIT multiples | EBITDA multiples | Sales Multiple |
|---|---|---|---|---|
| Software / IT Services | 5 | 10.6 | 9.3 | 1.5 |
| Manufacturing industry | 4.5 | 8.8 | 7.5 | 1.1 |
| Services | 4.5 | 9.4 | 8.4 | 1.3 |
| Food and beverage service activities | 4.1 | 7.8 | 6.5 | 1 |
| trade | 3.4 | 6.3 | 5.8 | 0.8 |
| craft / construction | 2.6 | 5.1 | 4.6 | 0.6 |
6-25 employees
| industry | EBITC Multiple | EBIT multiples | EBITDA multiples | Sales Multiple |
|---|---|---|---|---|
| Software / IT Services | 7 | 12.7 | 10.8 | 1.4 |
| Manufacturing industry | 6.2 | 10.6 | 8.7 | 1.1 |
| Services | 6.3 | 11.3 | 9.8 | 1.2 |
| Food and beverage service activities | 5.7 | 9.4 | 7.4 | 0.9 |
| trade | 4.7 | 7.6 | 6.8 | 0.8 |
| craft / construction | 3.6 | 6.1 | 5.4 | 0.6 |
26 – 99 employees
| industry | EBITC Multiple | EBIT multiples | EBITDA multiples | Sales Multiple |
|---|---|---|---|---|
| Software / IT Services | 8.8 | 13.1 | 10.8 | 1.2 |
| Manufacturing industry | 7.8 | 10.8 | 8.7 | 0.9 |
| Services | 7.9 | 11.6 | 9.8 | 1 |
| Food and beverage service activities | 7.2 | 9.7 | 7.5 | 0.8 |
| trade | 6 | 7.8 | 6.8 | 0.6 |
| craft / construction | 4.5 | 6.3 | 5.4 | 0.5 |
Italy
2-5 employees Test B
| industry | EBITC Multiple | EBIT multiples | EBITDA multiples | Sales Multiple |
|---|---|---|---|---|
| Software / IT Services | 4.7 | 8.1 | 7.6 | 1.5 |
| Manufacturing industry | 4.2 | 6.7 | 6.2 | 1.1 |
| Services | 4.2 | 7.1 | 6.8 | 1.2 |
| Food and beverage service activities | 3.9 | 6 | 5.4 | 1 |
| trade | 3.2 | 4.8 | 4.5 | 0.8 |
| craft / construction | 2.4 | 3.9 | 3.7 | 0.6 |
6-25 employees
| industry | EBITC Multiple | EBIT multiples | EBITDA multiples | Sales Multiple |
|---|---|---|---|---|
| Software / IT Services | 6.6 | 9.7 | 8.9 | 1.4 |
| Manufacturing industry | 5.8 | 8.1 | 7.2 | 1.1 |
| Services | 5.9 | 8.6 | 8.1 | 1.2 |
| Food and beverage service activities | 5.4 | 7.2 | 6.2 | 0.9 |
| trade | 4.4 | 5.8 | 5.5 | 0.8 |
| craft / construction | 3.4 | 4.7 | 4.4 | 0.6 |
26 – 99 employees
| industry | EBITC Multiple | EBIT multiples | EBITDA multiples | Sales Multiple |
|---|---|---|---|---|
| Software / IT Services | 8.3 | 10 | 9 | 1.2 |
| Manufacturing industry | 7.3 | 8.3 | 7.3 | 0.9 |
| Services | 7.4 | 8.8 | 8.2 | 1 |
| Food and beverage service activities | 6.7 | 7.4 | 6.3 | 0.8 |
| trade | 5.6 | 5.9 | 5.6 | 0.6 |
| craft / construction | 4.2 | 4.8 | 4.5 | 0.5 |
Development of EBITC multiples over time (6-25 employees)
⬤ IT / Software ⬤ Manufacturing industry ⬤ Services. ⬤ Gastronomy ⬤ Trade ⬤ Craft & Construction
Switzerland
2-5 employees Test B
| industry | EBITC Multiple | EBIT multiples | EBITDA multiples | Sales Multiple |
|---|---|---|---|---|
| Software / IT Services | 4.1 | 8.3 | 7.5 | 1.2 |
| Manufacturing industry | 3.7 | 6.9 | 6.1 | 0.9 |
| Services | 3.7 | 7.4 | 6.8 | 1 |
| Food and beverage service activities | 3.4 | 6.2 | 5.2 | 0.8 |
| trade | 2.8 | 4.9 | 4.6 | 0.7 |
| craft / construction | 2.1 | 4 | 3.7 | 0.5 |
6-25 employees
| industry | EBITC Multiple | EBIT multiples | EBITDA multiples | Sales Multiple |
|---|---|---|---|---|
| Software / IT Services | 5.8 | 10 | 8.7 | 1.2 |
| Manufacturing industry | 5.1 | 8.3 | 7.1 | 0.9 |
| Services | 5.2 | 8.9 | 7.9 | 1 |
| Food and beverage service activities | 4.7 | 7.4 | 6 | 0.8 |
| trade | 3.9 | 5.9 | 5.4 | 0.6 |
| craft / construction | 2.9 | 4.8 | 4.3 | 0.5 |
26 – 99 employees
| industry | EBITC Multiple | EBIT multiples | EBITDA multiples | Sales Multiple |
|---|---|---|---|---|
| Software / IT Services | 7.2 | 10.3 | 8.8 | 1 |
| Manufacturing industry | 6.5 | 8.6 | 7.1 | 0.7 |
| Services | 6.5 | 9.1 | 7.9 | 0.8 |
| Food and beverage service activities | 5.9 | 7.6 | 6.1 | 0.6 |
| trade | 4.9 | 6.1 | 5.5 | 0.5 |
| craft / construction | 3.7 | 4.9 | 4.4 | 0.4 |
DEVELOPMENT OF EBITC MULTIPLES OVER TIME (6-25 EMPLOYEES)
⬤ IT / Software ⬤ Manufacturing industry ⬤ Services. ⬤ Gastronomy ⬤ Trade ⬤ Craft & Construction
Austria
2-5 employees Test B
| industry | EBITC Multiple | EBIT multiples | EBITDA multiples | Sales Multiple |
|---|---|---|---|---|
| Software / IT Services | 3.7 | 6 | 5.7 | 1.2 |
| Manufacturing industry | 3.3 | 5 | 4.6 | 0.9 |
| Services | 3.4 | 5.4 | 5.1 | 1 |
| Food and beverage service activities | 3.1 | 4.5 | 4 | 0.8 |
| trade | 2.5 | 3.6 | 3.4 | 0.7 |
| craft / construction | 1.9 | 2.9 | 2.8 | 0.5 |
6-25 employees
| industry | EBITC Multiple | EBIT multiples | EBITDA multiples | Sales Multiple |
|---|---|---|---|---|
| Software / IT Services | 5.2 | 7.3 | 6.6 | 1.2 |
| Manufacturing industry | 4.6 | 6 | 5.3 | 0.9 |
| Services | 4.7 | 6.5 | 6 | 1 |
| Food and beverage service activities | 4.2 | 5.4 | 4.6 | 0.8 |
| trade | 3.5 | 4.3 | 4.1 | 0.6 |
| craft / construction | 2.7 | 3.5 | 3.3 | 0.5 |
26 – 99 employees
| industry | EBITC Multiple | EBIT multiples | EBITDA multiples | Sales Multiple |
|---|---|---|---|---|
| Software / IT Services | 6.5 | 7.5 | 6.6 | 1 |
| Manufacturing industry | 5.8 | 6.2 | 5.4 | 0.7 |
| Services | 5.9 | 6.6 | 6 | 0.8 |
| Food and beverage service activities | 5.3 | 5.5 | 4.6 | 0.6 |
| trade | 4.4 | 4.4 | 4.2 | 0.5 |
| craft / construction | 3.3 | 3.6 | 3.3 | 0.4 |
Development of EBITC multiples over time (6-25 employees)
⬤ IT / Software ⬤ Manufacturing industry ⬤ Services. ⬤ Gastronomy ⬤ Trade ⬤ Craft & Construction
United States
2-5 employees Test B
| industry | EBITC Multiple | EBIT multiples | EBITDA multiples | Sales Multiple |
|---|---|---|---|---|
| Software / IT Services | 3.5 | 6.4 | 6 | 1.2 |
| Manufacturing industry | 3.1 | 5.3 | 4.9 | 0.9 |
| Services | 3.2 | 5.6 | 5.3 | 1 |
| Food and beverage service activities | 2.9 | 4.7 | 4.3 | 0.8 |
| trade | 2.4 | 3.8 | 3.6 | 0.7 |
| craft / construction | 1.8 | 3.1 | 2.9 | 0.5 |
6-25 employees
| industry | EBITC Multiple | EBIT multiples | EBITDA multiples | Sales Multiple |
|---|---|---|---|---|
| Software / IT Services | 4.9 | 7.7 | 7.1 | 1.2 |
| Manufacturing industry | 4.4 | 6.3 | 5.8 | 0.9 |
| Services | 4.4 | 6.8 | 6.4 | 1 |
| Food and beverage service activities | 4 | 5.7 | 5 | 0.8 |
| trade | 3.3 | 4.5 | 4.3 | 0.6 |
| craft / construction | 2.5 | 3.7 | 3.5 | 0.5 |
26 – 99 employees
| industry | EBITC Multiple | EBIT multiples | EBITDA multiples | Sales Multiple |
|---|---|---|---|---|
| Software / IT Services | 6.2 | 7.9 | 7.2 | 1 |
| Manufacturing industry | 5.5 | 6.5 | 5.8 | 0.7 |
| Services | 5.6 | 7 | 6.5 | 0.8 |
| Food and beverage service activities | 5.1 | 5.8 | 5 | 0.6 |
| trade | 4.2 | 4.7 | 4.4 | 0.5 |
| craft / construction | 3.2 | 3.8 | 3.6 | 0.4 |
Development of EBITC multiples over time (6-25 employees)
⬤ IT / Software ⬤ Manufacturing industry ⬤ Services. ⬤ Gastronomy ⬤ Trade ⬤ Craft & Construction
United Kingdom
2-5 employees Test B
| industry | EBITC Multiple | EBIT multiples | EBITDA multiples | Sales Multiple |
|---|---|---|---|---|
| Software / IT Services | 3 | 5.6 | 5.3 | 1.1 |
| Manufacturing industry | 2.6 | 4.7 | 4.4 | 0.9 |
| Services | 2.7 | 5 | 4.7 | 0.9 |
| Food and beverage service activities | 2.4 | 4.2 | 3.8 | 0.7 |
| trade | 2 | 3.3 | 3.2 | 0.6 |
| craft / construction | 1.5 | 2.7 | 2.6 | 0.5 |
6-25 employees
| industry | EBITC Multiple | EBIT multiples | EBITDA multiples | Sales Multiple |
|---|---|---|---|---|
| Software / IT Services | 4.1 | 6.8 | 6.4 | 1.1 |
| Manufacturing industry | 3.7 | 5.6 | 5.2 | 0.8 |
| Services | 3.7 | 6 | 5.7 | 0.9 |
| Food and beverage service activities | 3.4 | 5 | 4.5 | 0.7 |
| trade | 2.8 | 4 | 3.8 | 0.6 |
| craft / construction | 2.1 | 3.3 | 3.1 | 0.5 |
26 – 99 employees
| industry | EBITC Multiple | EBIT multiples | EBITDA multiples | Sales Multiple |
|---|---|---|---|---|
| Software / IT Services | 5.2 | 7 | 6.5 | 0.9 |
| Manufacturing industry | 4.6 | 5.8 | 5.2 | 0.7 |
| Services | 4.7 | 6.2 | 5.8 | 0.8 |
| Food and beverage service activities | 4.3 | 5.2 | 4.5 | 0.6 |
| trade | 3.5 | 4.1 | 3.9 | 0.5 |
| craft / construction | 2.7 | 3.3 | 3.2 | 0.4 |
Development of EBITC multiples over time (6-25 employees)
⬤ IT / Software ⬤ Manufacturing industry ⬤ Services. ⬤ Gastronomy ⬤ Trade ⬤ Craft & Construction
Canada
2-5 employees Test B
| industry | EBITC Multiple | EBIT multiples | EBITDA multiples | Sales Multiple |
|---|---|---|---|---|
| Software / IT Services | 3.5 | 6.4 | 6 | 1.2 |
| Manufacturing industry | 3.1 | 5.3 | 4.9 | 0.9 |
| Services | 3.2 | 5.6 | 5.3 | 1 |
| Food and beverage service activities | 2.9 | 4.7 | 4.3 | 0.8 |
| trade | 2.4 | 3.8 | 3.6 | 0.7 |
| craft / construction | 1.8 | 3.1 | 2.9 | 0.5 |
6-25 employees
| industry | EBITC Multiple | EBIT multiples | EBITDA multiples | Sales Multiple |
|---|---|---|---|---|
| Software / IT Services | 4.9 | 7.7 | 7.1 | 1.2 |
| Manufacturing industry | 4.4 | 6.3 | 5.8 | 0.9 |
| Services | 4.4 | 6.8 | 6.4 | 1 |
| Food and beverage service activities | 4 | 5.7 | 5 | 0.8 |
| trade | 3.3 | 4.5 | 4.3 | 0.6 |
| craft / construction | 2.5 | 3.7 | 3.5 | 0.5 |
26 – 99 employees
| industry | EBITC Multiple | EBIT multiples | EBITDA multiples | Sales Multiple |
|---|---|---|---|---|
| Software / IT Services | 6.2 | 7.9 | 7.2 | 1 |
| Manufacturing industry | 5.5 | 6.5 | 5.8 | 0.7 |
| Services | 5.6 | 7 | 6.5 | 0.8 |
| Food and beverage service activities | 5.1 | 5.8 | 5 | 0.6 |
| trade | 4.2 | 4.7 | 4.4 | 0.5 |
| craft / construction | 3.2 | 3.8 | 3.6 | 0.4 |
Development of EBITC multiples over time (6-25 employees)
⬤ IT / Software ⬤ Manufacturing industry ⬤ Services. ⬤ Gastronomy ⬤ Trade ⬤ Craft & Construction
South Africa
2-5 employees Test B
| industry | EBITC Multiple | EBIT multiples | EBITDA multiples | Sales Multiple |
|---|---|---|---|---|
| Software / IT Services | 3.5 | 6.3 | 5.9 | 1.3 |
| Manufacturing industry | 3.1 | 5.2 | 4.8 | 1 |
| Services | 3.2 | 5.5 | 5.3 | 1.1 |
| Food and beverage service activities | 2.9 | 4.6 | 4.2 | 0.8 |
| trade | 2.4 | 3.7 | 3.5 | 0.7 |
| craft / construction | 1.8 | 3 | 2.9 | 0.5 |
6-25 employees
| industry | EBITC Multiple | EBIT multiples | EBITDA multiples | Sales Multiple |
|---|---|---|---|---|
| Software / IT Services | 4.9 | 7.5 | 6.9 | 1.2 |
| Manufacturing industry | 4.4 | 6.3 | 5.6 | 0.9 |
| Services | 4.4 | 6.7 | 6.3 | 1 |
| Food and beverage service activities | 4 | 5.6 | 4.9 | 0.8 |
| trade | 3.3 | 4.5 | 4.2 | 0.7 |
| craft / construction | 2.5 | 3.6 | 3.4 | 0.5 |
26 – 99 employees
| industry | EBITC Multiple | EBIT multiples | EBITDA multiples | Sales Multiple |
|---|---|---|---|---|
| Software / IT Services | 6.2 | 7.8 | 7 | 1 |
| Manufacturing industry | 5.5 | 6.4 | 5.7 | 0.8 |
| Services | 5.6 | 6.9 | 6.4 | 0.8 |
| Food and beverage service activities | 5.1 | 5.7 | 4.9 | 0.7 |
| trade | 4.2 | 4.6 | 4.3 | 0.5 |
| craft / construction | 3.2 | 3.7 | 3.5 | 0.4 |
DEVELOPMENT OF EBITC MULTIPLES OVER TIME (6-25 EMPLOYEES)
⬤ IT / Software ⬤ Manufacturing industry ⬤ Services. ⬤ Gastronomy ⬤ Trade ⬤ Craft & Construction
Explanation: The evaluation based on multiples
The valuation of companies using so-called multiples is widespread in practice. The method allows a comparison to companies that have already received real purchase offers. The observed purchase prices are viewed as a multiple (“multiple”) of a certain financial ratio of the respective company sold and this multiple can then be applied to the company to be valued. Experience has shown that the observed multiples differ significantly depending on the industry, company size and country. The EBITC multiple is NIMBO’s preferred multiple. Statistical evaluations show that it is particularly suitable for evaluating small and medium-sized companies. In addition, we also show the EBIT multiple , EBITDA multiple , and sales multiple, which are popular in practice.
EBIT multiple = Purchase price ⁄ EBIT = purchase price ⁄ earnings before interest and taxes
EBITDA Multiples = Purchase price ⁄ EBITDA = purchase price ⁄ earnings before interest, taxes, depreciation and amortization
EBITC Multiple = Purchase price ⁄ EBITC = purchase price ⁄ earnings before interest, taxes and director’s salary
Sales Multiple = Purchase Price ⁄ EBITC = Purchase Price ⁄ Sales
Company valuation sample calculation multiple method
A company with a turnover of 3,000,000 and an EBIT (earnings before interest and taxes) of 400,000 and depreciation of 40,000 is to be valued using the multiple method. The managing director is currently paying himself a salary of 100,000. On average, EBIT multiples of 6, EBITDA multiples of 5.5, EBITC multiples of 4 and sales multiples of 0.9 are currently observed for the country, industry and company size.
Valuation with EBIT multiple: EBIT x EBIT multiple = 400’000 x 6 = 2’400’000
Valuation with EBITDA Multiple: EBITDA x EBITDA Multiple = (400’000 + 40’000) x 5.5 = 2’420’000
Valuation with EBITC Multiple: EBITC x EBITC Multiple = (400’000 + 100’000) x 5 = 2’500’000
Valuation with turnover multiple: turnover x turnover multiple = 3’000’000 x 0.9 = 2’700’000
Financial debt is deducted to calculate the value of equity.
As the example shows, different evaluation multiples can lead to different results. There is no general rule as to which multiple is used when. You can also calculate the average of several multiples. Multiples related to profit are considered by many to be more plausible. NIMBO bases its valuation on the EBITC multiple as statistical analysis shows that this multiple is best for valuing SMEs.
More detailed information on the multiple method and other common evaluation methods .
Frequently Asked Questions
Applying the EBIT, EBITC, EBITDA and Revenue Multiple can lead to significantly different results. How can that be?
The results of the individual multiples differ, the more the cost structure deviates from the average cost structure of the comparison group. For example, if the company has proportionally higher depreciation than the comparison group, a valuation with the EBITDA multiple leads to a higher valuation than with the EBIT multiple.
Which multiple should I use to rate my company?
The EBIT multiple has the advantage over the EBITDA multiple that past investments are smoothed out by depreciation. If similarly high investments have to be made in the future, the EBIT multiple is a good basis for the evaluation.
The EBITDA multiple is a good basis if no significant investments are to be made in the future. It is also unaffected by accounting assumptions regarding depreciation.
Compared to the EBIT multiple, the EBITC multiple has the advantage that no assumptions have to be made about the market-based salary of a managing director. In the case of EBIT, the manager's salary must be adjusted. In EBITC, the owner's profit and wages are taken as a total. The EBITC also allows companies to be evaluated that do not make a profit but can pay the manager a salary. With the EBIT multiple method, such companies would be valued at zero.
If you are not sure which multiple to use, it is advisable to form an average of the methods.
How do the NIMBO multiples for Germany differ from the DUB multiples?
The DUB Multiples are based on a collection of many individual company acquisitions, which are compiled by a number of M&A partners from Deutsche Unternehmerbörse. The detailed data are calculated using a scientific method after several plausibility checks.
The NIMBO Multiples show what purchase offers the company owners have received. To this end, we survey thousands of entrepreneurs across several countries every month whether they have received an offer to buy their company. Due to the standardized questionnaire from NIMBO and the large amount of data, a large number of industry-independent factors can be taken into account (dependencies on the owner, market position of the company, cluster risks and many more). This allows cleanup and simplifies development of the multiples.
