Smaller companies tend to trade at lower valuation (EBITDA) multiples, because they are more risky (i.e. less diversified) than larger companies.
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Small businesses with revenues under $5 million typically trade 2 to 3 times earnings (EBITDA).
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Companies with revenues under $150 million typically trade 4 to 7 times EBITDA.
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Companies with revenues under $500 million typically trade 8 to 9 times EBITDA.
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Companies with revenues under $1 billion typically trade 10 to 12 times EBITDA.
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Growing companies with revenues greater than a $1 billion earnings often trade at multiples greater than 12 times EBITDA.
revenues greater than a $1 billion earnings often trade at multiples greater than 12 times EBITDA.
Posted by: medical billing | October 02, 2010 at 06:36 AM
very informative post, i really didn't know that.
Posted by: credit card | May 24, 2010 at 02:11 AM