Multiple
The ratio of price to a earnings measure such as SDE, cash flow, or EBITDA, used to compare similar businesses.
Last updated September 5, 2026
A multiple is asking price (or enterprise value) divided by SDE, cash flow, or EBITDA. Main Street restaurants and service shops often trade on a cash-flow or SDE multiple; larger firms may use EBITDA. Multiples vary by industry, size, growth, customer concentration, lease quality, and whether real estate is included. A low multiple is not automatically a bargain if earnings are overstated or the lease is short.