Finance

Profit multiplier is a financial metric used to assess the value of a Company.
It’s calculated by dividing the business’s sale price by its annual profit (annual profit often defined as earnings before interest, taxes, depreciation, and amortization, or in short: EBITDA).
Another (simpler) way is to divide current stock price by earning per share (eps).

following is a list of EBITDA multipliers by industry:

Healthcare information and technology	38.58
Airlines	6.42
Drugs, biotechnology	56.20
Hotels and casinos	17.27
Retail, general	14.70
Retail, food	8.89
Utilities, excluding water	12.74
Homebuilding	10.52
Medical equipment and supplies	32.70
Oil and gas, exploration and production	4.60
Telecom, equipment (phones & handheld devices)	14.50
Professional information services (big data)	33.16
Software, system & application	41.53
Wireless telecommunications services	7.40