Trading multiples method

The trading multiples method (méthode des multiples boursiers) values an unlisted company by reference to the trading multiples of comparable listed companies — EV/EBITDA, EV/EBIT, EV/Revenue, PER. Listed multiples reflect minority, liquid market pricing. For unlisted company application, adjustments are required: illiquidity discount (10–30%), size adjustment and control premium if 100% acquisition is targeted. Comparable selection — the most critical step — requires careful screening for sector, size, geography and business model similarity. See our valuation methods guide.

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Example: for a Swiss precision mechanics SME, Hectelion selects 8 listed European comparables with median EV/EBITDA of 7.2x. After applying a 20% illiquidity discount (retained multiple: 5.76x) and applying to normalised EBITDA of CHF 3.0 million, enterprise value is CHF 17.3 million. Triangulated with transaction multiples (CHF 19.5 million) and DCF (CHF 18.8 million), the conclusion range is CHF 17.3–19.5 million.

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Hectelion constructs and justifies trading multiple selections with documented comparable panels, providing market-anchored valuations triangulated against DCF.