The Multiples method values your company by multiplying one year of revenue or EBITDA (earnings before interest, taxes, depreciation and amortisation) from your financial projections by a market multiple. Equidam calculates it for every company and shows it next to the five methods, but its default weight is 0%. A blank weight under Multiples is that 0%. The method counts toward your valuation only after you give it a weight.
What does a blank Multiples weight mean?
It means the weight is 0%. On Advanced Settings, every method with a 0% weight is shown faded. Where the other methods show a percentage box, a 0% method shows none. With Custom values on, it shows an Activate button instead. The Multiples method starts at 0% for every company, at every stage of development, so it looks this way by default. Any other method set to 0% looks the same.
Why is the Multiples method's default weight 0%?
The default weights come from a table that sets a weight for each of the five methods by stage of development. The Multiples method is not in that table, so Equidam sets its weight to 0% for every company. The five methods (Scorecard, Checklist, VC Method, DCF with Long-Term Growth and DCF with Multiples) share the full 100% by default.
A weight of 0% multiplies the method's value by zero in the weighted average. It also leaves the method out of the spread used to calculate the valuation range.
Where the Multiples method is hidden at 0%
Advanced Settings: shown, faded, with its value but no weight box.
Methods Breakdown on the dashboard: not shown at all. The other methods stay visible even at 0%.
The valuation report: the Multiples method page is left out, and the method has no slice in the methods chart.
The interactive report link: the Multiples section is left out.
How do I give the Multiples method a weight?
Open Advanced Settings from the sidebar, or click Customize on the Methods Breakdown card.
Turn on Custom values in the top bar.
Under Multiples in the Weight of the methods row, click Activate. This sets its weight to 10%.
Lower one or more of the other weights until the total is 100%. While it is off, the panel shows Exceeding 100% or 100% not reached.
Click Save.
The Multiples method then counts toward your weighted average and your valuation range, and it appears on the dashboard and in the report. The multiple it uses is set on the Advanced Multiples page. That page has no weight control, so the weight is always set on Advanced Settings.
To stop counting it again, click Deactivate under Multiples, rebalance the other weights to 100% and save.
Limits
Editing weights needs the Advanced plan or the Expert plan. On the free plan, Advanced Settings is read-only.
Weights are whole percentages from 0 to 100, and the six weights must total 100% before you can save. The server rejects any other total.
Your custom weights apply only while Custom values is on. Turn it off and every weight goes back to its default, which puts the Multiples method back at 0%.
If the revenue or EBITDA figure it uses is below zero, the Multiples method's value is 0. Advanced Settings shows Negative for any method whose value is 0 or below.
Common questions
Is a blank weight a bug?
No. A blank weight is 0%. The percentage box is hidden for any method set to 0%, and the Multiples method is set to 0% by default.
Why can't I find the Multiples method on the Advanced Multiples page?
Advanced Multiples controls which multiple is used, not how much the method counts. The Multiples method's weight is set on Advanced Settings, like the weights of the five methods.
Does the Multiples method change my valuation if I leave it at 0%?
No. A 0% weight contributes nothing to the weighted average or the range. Your valuation reflects the five methods and the data you entered.
Will giving it a weight change my valuation?
Yes. Its value is added to the weighted average in proportion to its weight, and the weights you take from other methods reduce their share. The average at the top of Advanced Settings updates as you change the weights.