Market Multiple (EV / EBITDA or EV / Sales)

How many times its yearly earnings or sales the stock market pays for a company, taken from similar companies whose shares are listed.

Multiplying your own last year EBITDA by that number gives a second estimate of what the business is worth. It is a cross-check that sits beside the DCF and never replaces it. Listed prices are not adjusted for a private company or for another country.