Bizval Indicator Report
for September 2025
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 |
|---|---|---|
| 355 | 333 | 6.6% |
Source: Bizval, 30 September 2025.
Bizval Indicator up 6.6% for the year to September 2025.
September 2025 saw the Bizval Indicator close out at 355, which was an increase of 6.6% on a year-on-year basis from 333 recorded in September 2024.
On a quarterly basis, September 2025 was slightly down on the indicator of 363 recorded in June 2025. It should be noted that the June 25 quarter’s BIR was a four year high.
The greatest influence on the Bizval Indicator was from increases in the P/E Ratios of small cap. stocks. Most of the other Bizval Indictor factors remained steady.
Here at Bizval the September 25 quarter saw a large number of valuations for Family Law purposes, closely followed by restructures and estate planning.
General Economic Indicators
| INDICATOR | NOW | 1 YEAR AGO | MOVEMENT |
|---|---|---|---|
| All Ordinaries Index AU (1) | 9,136 | 8,538 | 7.00% |
| RBA Cash Rate AU (2) | 3.60% | 4.35% | -0.75% |
| GDP AU (3) | 1.80% | 1.00% | 0.80% |
| Dow Jones Industrial Average USA (4) | 46,398 | 42,330 | 9.61% |
| Inflation Rate AU (5) | 2.10% | 3.80% | -1.70% |
| Unemployment Rate AU (6) | 4.30% | 4.10% | 0.20% |
(1) Source: Australian Stock Exchange, 30 September 2025
(2) Source: Reserve Bank of Australia, 1 October 2025
(3) Source: Australian Bureau of Statistics, 30 June 2025 (seasonally adjusted, yearly)
(4) Source: New York Stock Exchange, 30 September 2025
(5) Source: Australian Bureau of Statistics, 30 July 2025 (headline, yearly)
(6) Source: Australian Bureau of Statistics, 18 September 2025
Consumer Price Index
The Consumer Price Index (CPI) rose 0.7% in the June 2025 quarter and 2.10% annually, according to the latest data from the Australian Bureau of Statistics (ABS).
Michelle Marquardt, ABS Head of Prices Statistics, said: “The CPI rose 0.70% in the June quarter, lower than the 0.90% rise in the March 2025 quarter.”
She went on to elaborate: “annual inflation to the June 2025 quarter of 2.10% was down from 2.40% to the March quarter. This is the lowest annual inflation rate since the March 2021 quarter.” (Source: ABS)
RBA Cash Rate
At its meeting on 30 September 2025, the Board decided to leave the cash rate unchanged at 3.60%.
Data for the June quarter show that private demand is recovering a little more rapidly than expected, taking over from public demand as the driver of growth. In particular, private consumption is picking up as real household incomes rise and measures of financial conditions ease. The housing market is strengthening, a sign that recent interest rate decreases are having an effect. Credit is readily available to both households and businesses.
Various indicators suggest that labour market conditions have been broadly steady in recent months and remain a little tight. (Source: RBA)
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.