Finance and valuation
Valuation multiple
A valuation multiple is a number applied to earnings or another base to estimate what a business is worth; for example, a multiple of EBITDA.
ADA News (March 2026) says multiples show how buyers value profit. It reports that, based on Panacea Financial transaction data, most healthy solo general practices trade at roughly 65 to 85 percent of prior-year collections, with EBITDA multiples in the 3.5 to 5.5 times range. That is one lender's data from one period and is not a standard. The IRS Internal Revenue Manual says an appraiser selects discount rates, capitalization rates or multiples to fit the benefit stream chosen for the valuation. A multiple only works with the matching base, so a multiple of collections cannot be applied to earnings. See practice valuation and market approach.