Entry multiple
The valuation multiple used at acquisition, such as enterprise value divided by annual or last-twelve-month earnings before interest, taxes, depreciation and amortization (EBITDA). Entry pricing reflects negotiation and market conditions as well as the buyer’s decision.
Entry multiple in round numbers
Hypothetical: US$5m of annual EBITDA multiplied by an 8x entry enterprise-value multiple gives US$40m of enterprise value. Use the same earnings definition and period when comparing multiples.
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| Measure | Value |
|---|---|
| Annual EBITDA | US$5m |
| EV / EBITDA entry multiple | 8x |
| Enterprise value | US$5m × 8 = US$40m |
Terms Related to Entry multiple
Exit multiple · Enterprise value · Multiple · EBITDA · The Walk/Watch/Worry Rule · The Five Laws of PE Value Creation · All of the glossary