{"ok":true,"canonical_url":"https://www.capbench.com/glossary/market-multiples","api_url":"https://www.capbench.com/api/public/glossary/market-multiples","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-18","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","CapBench lender and franchise enrichment"],"term":{"slug":"market-multiples","term":"Market Multiples","group":"Reading the business","definition":"A valuation method that uses ratios derived from recent sales of comparable businesses to estimate a target business's value. Common multiples include multiples of EBITDA or SDE.","what_it_means":"Your business valuation will likely incorporate market multiples, comparing the target business to similar transactions. It's crucial to understand the nuances of these comparisons, ensuring the comparable businesses truly match in size, industry, and geography, to arrive at a fair market value.","url":"https://www.capbench.com/glossary/market-multiples","official_sources":[],"related":[{"slug":"business-valuation","term":"Business valuation","url":"https://www.capbench.com/glossary/business-valuation"},{"slug":"multiple","term":"Multiple","url":"https://www.capbench.com/glossary/multiple"},{"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 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"},{"question":"How does a lender determine the fair market value of business equipment used as collateral?","url":"https://www.capbench.com/sba-7a/questions/how-does-a-lender-determine-the-fair-market-value-of-business-equipment-used-as-collateral"},{"question":"How does the SBA verify the fair market value of assets contributed as equity injection?","url":"https://www.capbench.com/sba-7a/questions/how-does-the-sba-verify-the-fair-market-value-of-assets-contributed-as-equity-injection"},{"question":"How does a lender evaluate the market value of collateral when there are limited comparable sales?","url":"https://www.capbench.com/sba-7a/questions/how-does-a-lender-evaluate-the-market-value-of-collateral-when-there-are-limited-comparabl"},{"question":"If a borrower contributes equipment as equity, how does the lender verify its fair market value?","url":"https://www.capbench.com/for-lenders/questions/if-a-borrower-contributes-equipment-as-equity-how-does-the-lender-verify-its-fair-market-v"},{"question":"How does the SBA evaluate the fair market value of goodwill in a business acquisition for financing?","url":"https://www.capbench.com/sba-7a/questions/how-does-the-sba-evaluate-the-fair-market-value-of-goodwill-in-a-business-acquisition-for-"}]},"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 Multiples","url":"https://www.capbench.com/glossary/market-multiples","source_type":"CapBench Data"}}