Opinion on E-Commerce Multiple

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by a searcher from University of Illinois at Urbana-Champaign - College of Business
in Austin, TX, USA

6mos ago

Opinion on E-Commerce Multiple

Niche e-commerce business doing just north of ~$3M EBITDA for 2023 and 2024. Estimated 2025 is ~$3.5M EBITDA. The ask is $25M. Roughly 7.15x multiple. What is your opinion?

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reply by an intermediary 6mos ago
from University of Washington in Chicago, IL, USA

Way way too high. eCommerce multiples are around the 2.75X-4X at best. Here's a methodology for eCom valuations: redacted

reply by a professional 6mos ago
from Audencia Business School in Auckland, New Zealand

Is that EBITDA reported or adjusted? For e-commerce especially, the multiple can look very different once you strip out add-backs (owner comp, one-offs, marketing normalisation, fulfilment tweaks, etc.), so the answer materially affects whether 7.5x feels fair or not.