IT / software / digital business valuation multiples
A Singapore it / software / digital business is typically valued at 2.5×–4× SDE— its seller’s discretionary earnings (SDE) times the sector multiple. Across subsectors the range runs about 2×–4.5× SDE. The table below breaks it down; the calculator values a specific deal and scores it on price, cash flow and risk.
Value a it / software / digital business →IT / software / digital multiples by subsector
| Subsector | SSIC | SDE multiple |
|---|---|---|
| IT / digital services | 6201 | 2.5×–4× |
| Web / app development agency(est.) | 6201 | 2×–3.5× |
| IT support / managed services (MSP)(est.) | 6202 | 2.5×–4× |
| Data / AI / analytics(est.) | 6201 | 3×–4.5× |
| Cybersecurity(est.) | 6209 | 3×–4.5× |
What moves a it / software / digital multiple
Two it / software / digital 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 it / software / digital business
- Normalise to SDE — add the owner’s salary and one-offs back to profit.
- Apply the sector multiple — SDE × the it / software / digital range (2.5×–4× SDE).
- Adjust for quality — move within the range for margins, owner-dependence, recurring revenue and transferability.
- Bridge to equity — subtract net debt and settle the working-capital peg.
- Score the deal — check price, cash flow and risk together.
Frequently asked questions
- How much is a it / software / digital business worth in Singapore?
- A Singapore it / software / digital 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×–4.5× 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 it / software / digital businesses sell for?
- Headline it / software / digital 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.
Other industries
Methodology
Multiples are SDE-based and reflect Singapore SME norms as of 2026-06. Headline sectors are derived from broker/transaction multiple tables for Singapore SMEs; subsectors marked “(est.)” are inferred from the parent sector and SSIC classification — no public SG transaction comp exists for them, so they are indicative only and must be verified before use. SSIC codes follow ACRA’s SSIC 2025. This is a screening reference, not financial, legal or valuation advice — verify against primary sources before relying on any figure. Read the full methodology → Valuation guides →