Exit Multiple

Definitions

1. The multiple of revenue, EBITDA, or invested capital associated with an eventual sale or public-market outcome. Investors model exit multiples to estimate potential returns under different scenarios.

   In plain English: The valuation multiple or return multiplier expected at exit.

   Example: "At that revenue base, the model assumed a much lower exit multiple than during the peak market."

Related Terms

• Contingent Valuation
• Enterprise Value
• Future Valuation
• Internal Rate of Return
• IRR
• Market Cap
• Power Law
• Revenue Multiple
• Unlevered
• Upside
• Valuation Multiple