A model, not a table
Every published band comes out of the same model: reference multiple times DACH discount, scaled to size class. Nothing is lifted from a third-party table.
01 PrincipleMethodology
How the range is built
Five steps take the market level of listed companies to an indicative equity-value range for a privately held company. Each step has one defined job, and no published band is a copied table.
The derivation
Five steps to the range
From the reference multiple to an indicative equity-value range: the derivation, in the order it is computed.
The reference multiple
The starting point is the reference multiple: the EV/EBITDA level of listed European companies by sector, published annually and freely by Aswath Damodaran (NYU Stern). This shared benchmark keeps sectors consistent with one another and reaches into segments where the evidence is thinner. The reference multiple is a starting point of the derivation, not a verdict on the individual company.
The DACH discount
Shares in a privately held company are not as freely tradable as those of a listed group, and therefore trade at a discount. That discount, sector-specific and empirically derived, is carried as a factor of its own: the DACH discount. Reference multiple times DACH discount sets the base band for the Mittelstand.
The size and quality factors
A size factor scales the band to the company's size class, so size is counted exactly once. Within the range, three factors then set the position: the EBITDA trend, owner dependence, and the share of recurring revenue. Their effects combine multiplicatively and are capped overall, so no single factor can dominate the range.
The indicative range
The calculation runs on the EBITDA multiple as the primary method, with the revenue multiple as a plausibility check. The result is an indicative range, not a single value, which would claim a precision that simply does not exist. Where a sector's evidence is thinner, the range comes out wider and is not artificially narrowed.
The bridge to equity value
The final step is the bridge: enterprise value minus net debt gives equity value, the figure that actually matters to the owner. Cash in excess of financial debt raises it accordingly. The range is stated as a low, a mid, and a high.
PreviewThis application runs as a preview release: the multiple ranges are continuously calibrated and refined against current data. Results are preliminary and indicative.