When it comes to valuing a company, the comparables method is often used, especially for established businesses. It consists in determining the value of the company in relation to other similar businesses, in particular by considering their profitability.
Although the best comparison is the multiple at which a similar company has recently sold, publicly listed companies, whose financial data is publicly available, offer an interesting point of reference for establishing valuation multiples for SMEs (small and medium-sized enterprises). The multiples observed on the stock market are generally adjusted downwards to take account of differences in size, increased operational risk and the lower liquidity of SME shares compared with listed companies.
Discover the multiples by business sector that we have compiled below as at September 30, 2024.
