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Topical Terminology > Sales Multiple



1 Definition

Sales Multiple

For Sales Multiple we have a term and definition in Accounting.



Sales Multiple (Accounting)

is the most widely used valuation benchmark used in the valuation of a business. The information needed are annual sales and an industry multiplierwhich is usually a range of .25 to 1 or higher. The industry multiplier can be found in various financial publicationsas well as analyzing sales of comparable businesses. This method is easy to understand and use. The sales multiple is often used as the valuation benchmark.




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