According to the latest issue of the DealStats Value Index (DVI), which calculates valuation multiples and profit margins from closely held companies each quarter, as shown in the table, EBITDA multiples are at 4.0x for the third quarter of 2021, which is unchanged from the rate in the second quarter of 2021.
The 4Q 2021 DVI highlights the trend in the EBITDA multiple since 2015 and reports lower multiples than those available from private equity or investment banking sources, so they’re far more reflective of fair market value calculations than synergistic or financial sector pricing.
The chart also highlights the median selling price/EBITDA with the trailing three-quarter average over a five-year period. Download the current issue of DVI to see all of the new trends in private-company transactions.