Does anyone have a "rule of thumb" EBITDA multiple list?

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September 12, 2019

by a searcher from Clemson University in Wayland, MA, USA

For example, software companies are "x", distribution companies are normally "y". I understand there are a lot of variables but it would be great to have a starting point when initially evaluating companies.

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commentor profile
Reply by a searcher
from Southern Methodist University in Dallas, TX, USA
Second Tom K. above here are some averages over the past 3-4 years to answer your question directly:
EBITDA $0-$999k : IT=4.8x MFG=4.3x Distribution=4.6x Construction=3.3x All=4.3x
EBITDA $1M-$5M: IT=6.6x MFG=5.5x Distribution=5.2x Construction=4.8x All=5.5x
EBITDA $5M-$10M: IT=7.1x MFG=6.4x Distribution=6.0x Construction=5.6x All=6.3x

There are other industry classifications if you want to go deep and run the stats. As always the usual disclaimers apply. Which is that these are averages and don't tell you whether a business is growing or dying, loosing customers or gaining market share, balance sheet heavy or balance sheet light etc etc.
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Reply by an investor
from Illinois Institute of Technology in Pasadena, CA, USA
check out the data from the 2019 Pepperdine University's Capital Markets Group: p.47

https://digitalcommons.pepperdine.edu/gsbm_pcm_pcmr/12/
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Tom KorzeneckiPrincipal Managing DirectorGrand Avenue Capital Partners, LLC
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