# Multiple

The ratio of price to earnings a business is priced at.

A multiple only means something when the earnings measure and what is baked into it match, so an [SDE](https://searchspheresource.com/glossary/sde) multiple and an [EBITDA](https://searchspheresource.com/glossary/ebitda) multiple are different languages. And an asking multiple is an opening position, not a comp: what a business is actually worth turns on the [revenue mix](https://searchspheresource.com/glossary/revenue-mix) and risk behind the number, which is what the industry guides unpack.

In numbers: A landscaping business with $1.3M of SDE listed at $4.16M is asking 3.2x; whether that is fair depends on the revenue mix behind the number, which is what the industry guides unpack.

Source: https://searchspheresource.com/glossary/multiple
Not dated: A definition is editorial: what a term means, why it matters, and an example. None of it reads a source that can go stale, so there is no date to take and a stamped one would be the build time wearing a costume.

Site index for machines: https://searchspheresource.com/llms.txt