Profit Multiple Valuation is a business strategy that values the worth of a company based on the ratio of their total earnings relative to the cost associated with acquiring, operating and maintaining that business. In other words, it’s a way to determine how profitable a potential investment can be by looking at how much money it could make compared to how much money it will cost to maintain. Simply put, Profit Multiple Valuation is a thoughtful and efficient way to assess the future growth potential of any given business.