The EBITDA multiple is the number Equidam multiplies by your projected EBITDA (earnings before interest, taxes, depreciation and amortisation) to estimate what your company could be worth at exit. The VC method and DCF with multiples use it, and so does the Multiples method when you give it a weight. You choose where the multiple comes from on the Advanced Multiples page. That choice decides the number in your valuation. A different number can still appear in the report under Updated Default Values, because an old value saved in Advanced Settings stays on file after you change source.
Which multiple does my valuation use?
The card selected under Select your source on the Advanced Multiples page decides it.
Industry Average: the benchmark multiple for the industry set in your questionnaire. This is the default. The page labels its source as Prof. A. Damodaran, NYU Stern.
Comparables: a multiple calculated from the public companies you add to the table, using the median or average you pick. If you pick a revenue aggregation, a revenue multiple is applied to your revenue instead of EBITDA.
Manual Entry: the EBITDA multiple you type and save with Save Manual Multiple. The optional justification appears in the report.
Clicking a card saves it straight away, and a "Multiple source saved" message confirms it. The valuation then recalculates with the new multiple.
Why does the report show a different multiple from the one I selected?
The report can show two multiples, and only one of them is applied. The VC Method page shows the multiple used as Industry Multiple, and the DCF with Multiples page shows it as EBITDA multiple. Those figures follow the source you selected.
The Updated Default Values page is different. Its Multiple row, in the tables for DCF With Multiple and VC Method, lists the value stored in the Advanced Settings EBITDA multiple field under Updated, next to the Equidam Default. When Industry Average is your source, that stored value is not used in the calculation, but the row still prints it.
A stored value usually gets there in one of two ways:
You saved Advanced Settings while Comparables or Manual Entry was your source. The save writes that source's multiple into the Advanced Settings field.
The company was set up before multiples moved to their own page, and the multiple was typed into Advanced Settings then.
When does an old Advanced Settings multiple still count?
It counts only when the source you selected has no multiple of its own:
Comparables is selected but the table has no companies.
Manual Entry is selected but no multiple has been saved.
In both cases the valuation uses the stored Advanced Settings value if there is one, and the industry average if there is not. The Comparables card then shows "No companies selected" and the Manual Entry card shows "Not configured".
How do I make sure the multiple I want is applied?
Open Advanced Multiples in the sidebar.
Click the card for the source you want.
For Comparables, add at least one company, choose the aggregation and save. For Manual Entry, type the multiple and click Save Manual Multiple.
Generate the report and read the multiple on the VC Method or DCF with Multiples page.
Limits
On the free plan, the Advanced Multiples and Advanced Settings pages show a lock in the sidebar. You cannot change the source card or save Advanced Settings there; both open the upgrade window instead.
The EBITDA multiple field in Advanced Settings is greyed out and cannot be edited or reset there. Its tooltip sends you to Advanced Multiples.
The Comparables table holds up to 30 companies.
A manual multiple cannot be negative. The justification is limited to 1000 characters.
Industry Average follows the industry set in your questionnaire. Changing the industry there changes this multiple.
Common questions
I selected Industry Average. Is my valuation using the industry figure?
Yes, provided Industry Average is the selected card. The VC Method page of the report shows the figure applied as Industry Multiple.
Can I delete the old multiple from Advanced Settings myself?
No, the field and its reset button are locked. The old value does not change your valuation while your source has its own multiple, and you can ask us in chat about removing the row from the report.
Does switching source delete my manual multiple?
No. Your saved manual multiple and justification are kept, and they come back when you select Manual Entry again.
Why is a revenue multiple shown instead of EBITDA?
You chose a revenue aggregation, median or average, for Comparables. The methods then apply the revenue multiple to your revenue.