# EBITDA multiple

An EBITDA multiple is a valuation ratio buyers apply to a company's adjusted earnings to estimate its enterprise value. For MSPs, the multiple reflects recurring revenue quality, growth, client concentration and how transferable the operation is.

An EBITDA multiple is one of the simplest ways buyers estimate what a business is worth. They take the adjusted earnings before interest, tax, depreciation and amortisation and multiply by a number that reflects risk, growth and transferability.

## Why it matters to MSPs

For MSP owners, the multiple is the lever that turns a small change in profit into a large change in sale price. The same level of profit produces a higher enterprise value when a buyer accepts a stronger multiple. Improving the factors that drive the multiple is often more valuable than simply growing revenue.

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Source: https://mspagenda.com/glossary/ebitda-multiple
Last updated: 2026-09-11