Valuation: E-commerce and Digital Services in the UAE
Valuation: E-commerce and Digital Services in the UAE
How are online business for sale (especially E-commerce and digital services) typically valued in the UAE market, considering the high growth rate?
2 Answers
In the UAE, online businesses, including e-commerce and digital services, are typically valued using seller’s discretionary earnings (SDE) or EBITDA multiples, adjusted for growth potential, traffic, and customer base stability. High-growth businesses often command higher multiples, reflecting recurring revenue, scalability, and market trends.
In the UAE, online businesses like e‑commerce stores and digital services are typically valued using revenue or EBITDA multiples, often higher than traditional businesses because of their rapid growth potential and scalability. Multiples can range from 2–4× revenue or 3–6× EBITDA depending on niche, traffic stability, and recurring income. Emotionally, it feels exciting but a bit nerve-wracking you’re paying not just for today’s cash flow, but for future growth that could skyrocket, so due diligence and understanding the numbers is crucial to avoid overpaying in the hype of high-growth digital sectors.