Financial services business valuation multiples

Financial services multiples by subsector

What moves a financial services multiple

Two financial services businesses with the same earnings can be worth very different amounts. The multiple climbs toward the top of the 2.5×–4× SDE range when the earnings are high-margin and recurring, the business runs without the owner, the lease has years to run, and licences and key staff transfer cleanly to a buyer. It falls toward the bottom when margins are thin, the owner is the business, the lease is short, or a licence has to be re-applied for on sale.

How to value a financial services business

1. Normalise to SDE — add the owner’s salary and one-offs back to profit.
2. Apply the sector multiple — SDE × the financial services range (2.5×–4× SDE).
3. Adjust for quality — move within the range for margins, owner-dependence, recurring revenue and transferability.
4. Bridge to equity — subtract net debt and settle the working-capital peg.
5. Score the deal — check price, cash flow and risk together.

Frequently asked questions

How much is a financial services business worth in Singapore?

A Singapore financial services business is typically valued at 2.5×–4× SDE — that is, 2.5 to 4 times its seller's discretionary earnings (SDE). Across the subsectors the range runs about 2×–5× SDE. The exact figure depends on margins, owner-dependence, recurring revenue, lease runway and how transferable the licences and staff are.

What SDE multiple do financial services businesses sell for?

Headline financial services businesses sell around 2.5×–4× SDE SDE. Higher, stickier margins, low owner-dependence and recurring revenue push toward the top of the range; thin margins, a heavily owner-run operation or a short lease pull it toward the bottom.

Is the multiple applied to SDE or EBITDA?

For owner-operated businesses below roughly S$1m in earnings, Singapore SMEs are valued on SDE (seller's discretionary earnings — profit with the owner's salary and one-offs added back). Above that, EBITDA becomes the convention and the multiple is correspondingly lower. The calculator handles the conversion for you.