Bizval Indicator Report
for March 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 |
|---|---|---|
| 298 | 302 | -1.6% |
Source: Bizval, 31 March 2026.
Bizval Indicator pares back recent gains in the March ‘26 quarter
Following year-on-year gains over the past three quarters, the latest Bizval Indicator analysis suggests SME business valuations are falling.
An indicator of 298 was recorded in March 2026, representing a decline of 1.6% from 302 recorded in March 2025.
On a quarterly basis the data is even more alarming, posting a fall of 9.8% from the December 2025 quarter.
A drop in the P/E ratios of small ASX listed companies along with an increase in the number of businesses listed for sale both contributed to the decline.
Business lending rates advertised by the big four banks increased over the past quarter, also contributing to the recent decline in the Bizval Indicator.
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 over the quarter.
General Economic Indicators
| INDICATOR | NOW | 1 YEAR AGO | MOVEMENT |
|---|---|---|---|
| All Ordinaries Index AU (1) | 8,684 | 8,053 | 7.84% |
| RBA Cash Rate AU (2) | 4.10% | 4.10% | 0.00% |
| GDP AU (3) | 2.60% | 1.30% | 1.30% |
| Dow Jones Industrial Average USA (4) | 46,342 | 42,002 | 10.33% |
| Inflation Rate AU (5) | 3.70% | 2.40% | 1.30% |
| Unemployment Rate AU (6) | 4.30% | 4.00% | 0.30% |
(1) Source: Australian Stock Exchange, 31 March 2026
(2) Source: Reserve Bank of Australia, 18 March 2026
(3) Source: Australian Bureau of Statistics, 31 December 2025 (seasonally adjusted, yearly)
(4) Source: New York Stock Exchange, 31 March 2026
(5) Source: Australian Bureau of Statistics, 28 February 2026 (headline, yearly)
(6) Source: Australian Bureau of Statistics, 28 February 2026
Inflation
The Consumer Price Index (CPI) rose 3.7% in the 12 months to February 2026, according to the latest data from the Australian Bureau of Statistics (ABS).
Sue-Ellen Luke, ABS Head of Prices Statistics, said: “The 3.7% annual CPI inflation to February eased slightly from the 3.8% annual CPI inflation to January.”
The largest contributor to annual inflation in February was Housing, which rose by 7.2%. This was followed by a 3.1% rise in Food and Non-Alcoholic Beverages and a 4.1% rise in Recreation and Culture. (Source: ABS)
Unemployment Rate
The seasonally adjusted unemployment rate increased to 4.3% in February, according to the latest data from the Australian Bureau of Statistics (ABS).
Sean Crick, ABS Head of Labour Statistics, said: “The number of unemployed people grew by 35,000, contributing to the 0.2 percentage point increase of the unemployment rate in February.”
“This month we saw fewer people who were unemployed and waiting to start a job in January move into employment in February, compared to recent Februarys.”
“We also saw more people remaining unemployed this month compared to recent Februarys.”
Employed people grew by 49,000. Part-time employment rose by 79,000 people, while full-time employment fell by 30,000 people. (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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