Retail business valuation multiples
A Singapore retail business is typically valued at 1.5×–2.5× SDE— its seller’s discretionary earnings (SDE) times the sector multiple. Across subsectors the range runs about 1×–3× SDE. The table below breaks it down; the calculator values a specific deal and scores it on price, cash flow and risk.
Value a retail business →Retail multiples by subsector
| Subsector | SSIC | SDE multiple |
|---|---|---|
| Retail (general) | 4711 | 1.5×–2.5× |
| Fashion / apparel(est.) | 4771 | 1.5×–2.5× |
| Electronics / IT retail(est.) | 4741 | 1.5×–2.5× |
| Furniture / home goods(est.) | 4759 | 1.5×–2.5× |
| Pharmacy / health & beauty retail(est.) | 4772 | 2×–3× |
| Minimart / provision(est.) | 4711 | 1×–2× |
What moves a retail multiple
Two retail businesses with the same earnings can be worth very different amounts. The multiple climbs toward the top of the 1.5×–2.5× 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 retail business
- Normalise to SDE — add the owner’s salary and one-offs back to profit.
- Apply the sector multiple — SDE × the retail range (1.5×–2.5× 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 retail business worth in Singapore?
- A Singapore retail business is typically valued at 1.5×–2.5× SDE — that is, 1.5 to 2.5 times its seller's discretionary earnings (SDE). Across the subsectors the range runs about 1×–3× 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 retail businesses sell for?
- Headline retail businesses sell around 1.5×–2.5× 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 →