Annual Multiple
Written by Christopher Krassnig - Founder - Kairos Exchange and ZenoX Media.
Published
- Checks in every memo8
- Automatic on day one3 of 8
- Read by handad spend and processor payouts
- Tracked ecom salesEUR 200M+ZenoX ad-management figures, not Kairos deal volume - Kairos hasn't closed a deal yet.
Annual Multiple is a valuation multiple stated against a full year of profit rather than one month. FE International publishes 2.0x to 4.0x annual seller discretionary earnings for smaller Shopify brands. It is the standard small-business yardstick. Dropshipping and content-site listings often quote a monthly figure instead. The same price then reads as a much larger number.
Not to Be Confused With
- Monthly Multiple
- Converting a monthly figure to an annual one only fixes the period; the two are still not comparable unless the earnings base, net profit against SDE included, matches too.