Sales multiple

Sales multiple,

Definition of Sales multiple:

  1. Business valuation method used where industrial multipliers are published by the financial press or can be agreed-upon between a buyer and a seller. Sales multiple is computed by multiplying the annual sales revenue figure of the business by the industry multiplier (usually between 0.25 and 1.0) to arrive at the current market value of the business. See also profit multiple.

Meaning of Sales multiple & Sales multiple Definition