Cybersecurity Business — Business Valuation Multiple
EBITDA Valuation Guide · Small & Mid-Sized Businesses
Actual EBITDA multiples can vary materially based on EBITDA size, growth, recurring revenue, margins, customer concentration, owner dependence, geography and other company-specific factors.
Min
4×
Typical
6×
Max
8×
Revenue Model
Recurring
Capital Intensity
Low
A typical multiple of 6× EBITDA reflects mid-market transactions in the $1–$50M revenue range.
Overview
Cybersecurity businesses typically trade at 4×–8× EBITDA. Recurring managed security service contracts, professional accreditation, and growing regulatory and insurance mandate for cybersecurity services drive strong demand and valuations. Penetration testing and incident response capability add premium service lines. The primary risks are rapid technology evolution requiring continuous investment and a highly competitive talent market.
Key Value Drivers
- Recurring managed security service contracts
- Professional accreditation (ISO 27001, Cyber Essentials)
- Growing regulatory and insurance mandate
- Penetration testing and incident response capability
- Critical infrastructure exposure
Key Risks
- Rapid technology evolution requiring investment
- Talent shortage in certified professionals
- High-profile breach damaging reputation
- Client budget sensitivity in SME market
- Competition from large IT services players
Related Industries
Real-World Transaction
Fox Crypto → CR Group Nordic
2025 · Cybersecurity
These transactions involved companies substantially larger than the $1–$50M SME benchmark and are shown for context, not direct comparison.
Disclaimer: All multiples are indicative estimates only and are not formal valuations or investment advice. They should not be relied upon for financial decision-making without independent professional advice.