Bizval Indicator Report
for September 2026
We like to think of the Bizval Indicator as a ‘barometer’ of SME valuation multiples providing a perspective of the value of Australian small-to-medium sized businesses.
Unlike listed companies, the sale prices of SME’s are not readily available. The Bizval Indicator helps monitor movements in the drivers of SME values.
The Bizval Indicator is derived from key drivers of SME values and is then reviewed in the context of a basket of general economic indicators.
Bizval Indicator
| NOW | 1 YEAR AGO | MOVEMENT |
|---|---|---|
| 304 | 355 | -14.4% |
Source: Bizval, 30 September 2026.
Bizval Indicator remains at low level in the September ‘26 quarter
An indicator of 304 was recorded in the September 2026 quarter, a slight increase from 299 for the quarter ending June 2026.
Year-on-year the indicator has decreased by a significant 14.4%. The predominate drivers of this fall were twofold: firstly, the P/E ratios of small ASX listed companies and, secondly, increasing business finance costs.
Data garnered from our own valuations revealed an increase in SME valuation multiples, however at a nominal level.
Over the quarter we were engaged to undertake business valuations for a broad range of industries with Manufacturing, Wholesale and Professional Services the most popular.
General Economic Indicators
| INDICATOR | NOW | 1 YEAR AGO | MOVEMENT |
|---|---|---|---|
| All Ordinaries Index AU (1) | 8,969 | 9,136 | -1.83% |
| RBA Cash Rate AU (2) | 4.60% | 3.60% | 1.00% |
| GDP AU (3) | 2.10% | 1.80% | 0.30% |
| Dow Jones Industrial Average USA (4) | 50,906 | 46,398 | 9.72% |
| Inflation Rate AU (5) | 4.00% | 2.10% | 1.90% |
| Unemployment Rate AU (6) | 4.60% | 4.30% | 0.30% |
(1) Source: Australian Stock Exchange, 30 September 2026
(2) Source: Reserve Bank of Australia, 30 September 2026
(3) Source: Australian Bureau of Statistics, 30 June 2026 (seasonally adjusted, yearly)
(4) Source: New York Stock Exchange, 30 September 2026
(5) Source: Australian Bureau of Statistics, 30 August 2026 (headline, yearly)
(6) Source: Australian Bureau of Statistics, 30 August 2026
GDP
Australian gross domestic product (GDP) rose 0.4% in the June quarter 2026 and 2.1% compared to June quarter 2025 (seasonally adjusted, chain volume measure), according to figures released by the Australian Bureau of Statistics (ABS) in September 2026.
Grace Kim, ABS Head of National Accounts, said: “Economic growth remained subdued in the June quarter as households continued to behave cautiously. While increased spending and business investment occurred in pockets of the economy, imports supported much of the growth, moderating its contribution to overall GDP growth”. (Source: ABS)
Unemployment
The seasonally adjusted unemployment rate rose to 4.6% in August, according to the latest data from the Australian Bureau of Statistics (ABS).
Sean Crick, ABS Head of Labour Statistics, said: “This month there was (sic) 39,000 more people in employment, and 28,000 more people in unemployment.”
Part-time employment rose by 46,000 people in August, while full-time employment fell by 6,000 people.
“This August we recorded a higher proportion of people who were previously not in the labour force moving to being unemployed, compared to recent years,” Mr Crick said.
“The growth in the size of the labour force resulted in the participation rate increasing by 0.2 percentage points to 67.1%.”
The underemployment rate fell by 0.1 percentage points to 6.2%.
(Source: ABS)
Drivers of SME Values
The Bizval Indicator is calculated using a proprietary formula. We research, monitor and evaluate the following components to arrive at the result.
ASX Small Cap P/E Ratios
Small Capitalisation companies have greater similarities to private SMEs than large cap stocks. Bizval reviews the mean and median price earnings (P/E) ratios of companies with market capitalization of between $20 million and $200 million. We adjust these figures to align them more closely with private SMEs by reducing the P/E ratios to account for differences in size, key-person dependence and ability to easily buy or sell (liquidity).
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Business Loan Interest Rates
Bizval monitors the advertised interest rates of Australian major banks for business loans. Using an average of these rates we then add a risk margin (commonly added to the base rate by banks when lending to small businesses). We also add a hypothetical margin for the SME proprietor to reflect their return on investment. This interest rate is then converted to a multiple.
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Businesses for Sale
Bizval undertakes a review of the volume of businesses listed for sale across Australia, taking into account any movements in this number.
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Bizval Multiples
We review an average of the multiples used in our business valuations and combine these with multiples from actual business sales (where available).
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In addition to the four drivers of SME values, the Bizval Indicator is evaluated in the context of six national / international General Economic Indicators.
The All Ordinaries Index (Australian Stock Exchange)
The ‘All Ords’ is the oldest index of shares in Australia, dating from 1980. It is derived from the share prices of 500 of the largest companies listed on the Australian Securities Exchange (ASX).
Reserve Bank of Australia Cash Rate
The RBA sets the target ‘cash rate’, which is the market interest rate on overnight funds. It uses this as the instrument for monetary policy, and influences the cash rate through its financial market operations.
Gross Domestic Product (Australia)
GDP is a monetary measure of the market value of all final goods and services produced over a defined period of time.
Dow Jones Industrial Average (USA)
The ‘Dow’ is a US stock market price-weighted index monitoring the share trading performance of 30 large, publicly owned American-based companies.
Inflation Rate (Australia)
The Consumer Price Index (CPI) measures the average change over time in the prices paid by Australian households for a fixed basket of goods and services.
Unemployment Rate (Australia)
The proportion of unemployed persons in the labor force is seasonally adjusted to take account of changes in demand for agricultural labor, students seeking employment after completing education, and so on.
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An independent business valuation compiled by a professional can help. Contact BIZVAL or order your business valuation today.