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EBITDA vs SDE: Which Should You Use to Value a Small Business?

The difference between EBITDA and SDE, and which metric fits which size of business.

EBITDA vs SDE 4 key sections Businesses for Sale
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Article Overview

The difference between EBITDA and SDE, and which metric fits which size of business.

What This Article Covers

This SellBusiness resource focuses on EBITDA vs SDE . The source content brief identifies the following key areas for this article.

01

Definitions

02

When each is used

03

Example comparison

04

Which matters more for small vs mid-size businesses

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Content Category

Businesses for Sale

Core marketplace intent — buyers and sellers of businesses in general.

Related Topics

EBITDA vs SDE small business valuation metric

This information is general in nature. Business purchases, sales, financing, tax, legal and commercial real estate matters can vary by transaction. Professional advice should be obtained where appropriate.