profit multiple |
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Definition
Product of pretax or operating profit and a number (called market multiplier) which is either estimated from the selling prices of comparable businesses or is published by the financial press in some countries. This number commonly ranges from 1 to 5, depending on the current popularity or potential of a particular type of business. Profit multiple is one of the most widely used methods of valuing a business as a going concern. See also sales multiple.
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profit multiple is in the Accounting & Auditing, Banking, Commerce & Finance and Investing subjects.
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