{"ok":true,"canonical_url":"https://www.capbench.com/glossary/market-multiple","api_url":"https://www.capbench.com/api/public/glossary/market-multiple","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-17","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","CapBench lender and franchise enrichment"],"term":{"slug":"market-multiple","term":"Market multiple","aka":"Multiple","group":"Reading the business","definition":"This is a valuation metric derived from comparing a business to similar businesses that have recently sold. It's often expressed as a multiple of EBITDA or SDE.","what_it_means":"While not the sole valuation method for SBA loans, market multiples provide a quick benchmark for a business's worth. Understand how the seller's asking price compares to industry multiples, but remember that unique business factors can justify deviations. A good appraisal will consider multiple valuation approaches.","url":"https://www.capbench.com/glossary/market-multiple","official_sources":[],"related":[{"slug":"multiple","term":"Multiple","url":"https://www.capbench.com/glossary/multiple"},{"slug":"business-valuation","term":"Business valuation","url":"https://www.capbench.com/glossary/business-valuation"},{"slug":"ebitda","term":"EBITDA","url":"https://www.capbench.com/glossary/ebitda"},{"slug":"sde","term":"SDE","url":"https://www.capbench.com/glossary/sde"}],"related_questions":[{"question":"What if the business assets are located in multiple states, requiring multiple UCC filings?","url":"https://www.capbench.com/for-lenders/questions/what-if-the-business-assets-are-located-in-multiple-states-requiring-multiple-ucc-filings"},{"question":"How is life insurance structured when a business has multiple key owners?","url":"https://www.capbench.com/sba-7a/questions/how-is-life-insurance-structured-when-a-business-has-multiple-key-owners"},{"question":"What if the business I'm acquiring operates across multiple distinct industries?","url":"https://www.capbench.com/sba-7a/questions/what-if-the-business-i-m-acquiring-operates-across-multiple-distinct-industries"},{"question":"How does common management between multiple businesses trigger affiliation for SBA size purposes?","url":"https://www.capbench.com/sba-7a/questions/how-does-common-management-between-multiple-businesses-trigger-affiliation-for-sba-size-pu"},{"question":"What if my business has multiple locations; can all of them be covered?","url":"https://www.capbench.com/sba-7a/questions/what-if-my-business-has-multiple-locations-can-all-of-them-be-covered"},{"question":"What are the requirements for assigning secondary market loans through SBA Form 1088?","url":"https://www.capbench.com/for-lenders/questions/what-are-the-requirements-for-assigning-secondary-market-loans-through-sba-form-1088"}]},"caveats":["Definitions represent CapBench's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"CapBench Glossary — Market multiple","url":"https://www.capbench.com/glossary/market-multiple","source_type":"CapBench Data"}}