Bizval Indicator Report
for June 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 |
|---|---|---|
| 299 | 363 | -17.8% |
Source: Bizval, 30 June 2026.
Bizval Indicator tumbles 17.8% in the June ‘26 quarter
As we flagged last quarter, the Bizval Indicator has continued its fall over the year, now down 17.8% since June 2025.
On a quarterly basis it isn’t as alarming, being almost identical to the March ’26 figure of 298.
All four of the Bizval Indicator factors declined over the year. Those factors being; Bizval’s own multiples, P/E ratio’s of small ASX companies, business finance rates and the volume of businesses listed for sale.
During the quarter Bizval maintained a consistent number of valuations prepared, with the most common purposes being tax-related restructures and family law matters.
General Economic Indicators
| INDICATOR | NOW | 1 YEAR AGO | MOVEMENT |
|---|---|---|---|
| All Ordinaries Index AU (1) | 8,986 | 8,773 | 2.43% |
| RBA Cash Rate AU (2) | 4.35% | 3.85% | 0.50% |
| GDP AU (3) | 2.50% | 1.30% | 1.20% |
| Dow Jones Industrial Average USA (4) | 52,319 | 44,095 | 18.65% |
| Inflation Rate AU (5) | 4.00% | 2.40% | 1.60% |
| Unemployment Rate AU (6) | 4.40% | 4.10% | 0.30% |
(1) Source: Australian Stock Exchange, 30 June 2026
(2) Source: Reserve Bank of Australia, 17 June 2026
(3) Source: Australian Bureau of Statistics, 31 March 2026 (seasonally adjusted, yearly)
(4) Source: New York Stock Exchange, 30 June 2026
(5) Source: Australian Bureau of Statistics, 30 April 2026 (headline, yearly)
(6) Source: Australian Bureau of Statistics, 31 May 2026
Cash Rate
At its meeting on 16 June 2026, the RBA Board decided to leave the cash rate target unchanged at 4.35 per cent.
Inflation picked up materially in the second half of 2025, and information since the beginning of this year confirms that some of the increase reflected greater capacity pressures. The latest data show that headline and underlying inflation are still too high. Oil prices have eased in recent weeks, although energy and most related commodity prices remain higher than they were prior to the conflict in the Middle East. There are signs that some firms experiencing cost pressures are increasing the prices of their goods and services and others are looking to do so. Short-term measures of inflation expectations have eased but remain higher than earlier in the year. (Source: RBA)
Inflation
In the 12 months to May 2026:
- The Consumer Price Index (CPI) rose 4.0%, down from 4.2% in the 12 months to April 2026.
- The largest contributors to annual inflation were Housing (+6.5%), Food and non-alcoholic beverages (+3.3%) and Transport (+3.3%).
- Trimmed mean inflation was 3.6%, up from 3.4% in the 12 months to April 2026.
In the month of May, the CPI fell 0.7% in original terms and 0.1% in seasonally adjusted terms. (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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