SDE-based | 196 closed LMM transactions | 2017-2025
SDE (Seller's Discretionary Earnings) drives ecommerce valuation. Not revenue, not EBITDA. SDE is what a new owner would earn after replacing you at market rate.
Total gross revenue. Include all sales channels.
Net income + owner comp + interest + taxes + depreciation + amortization + discretionary expenses.
Revenue minus cost of goods (product, freight, packaging). Exclude fulfillment labor and marketing.
Compare SDE last 12 months vs. prior 12 months. The single biggest multiple driver.