Hey all,

When talking about price/SDE multiple being in the 2-4x range being ideal, do you include the cost of inventory in that price numerator?

I've seen conflicting opinions on this so I wanted to gauge how everyone's been thinking about it.

So far, I've been thinking of it as INCLUSIVE in the price so it pushes the multiple up to be what I consider normal.

The reason why I ask is because I see a lot of listings that have a seemingly great multiple and then when you get more info it mentions that inventory was NOT part of the advertised price so it goes from being a 2x multiple to a 2.5 or 3x.