EBITDA Multiples by Industry (2026 Data)

Technology and software companies lead the pack with EBITDA multiples of 6x to 12x for mid-market businesses. SaaS companies with strong net revenue retention (above 110%) consistently trade at the high end. Healthcare services (physician practices, home health, behavioral health) typically command 5x to 8x. Financial services and insurance agencies range from 4x to 7x, driven by recurring revenue and high client retention.

Professional services firms (accounting, consulting, engineering) generally fall in the 4x to 6x range. Manufacturing businesses trade at 3.5x to 6x, with specialized or niche manufacturers earning premiums. Construction and trades (HVAC, plumbing, electrical) range from 3x to 5x. Restaurants and food service businesses are typically 2.5x to 4x, reflecting lower margins and higher operational risk.

Retail businesses (brick-and-mortar) generally trade at 3x to 4.5x, while e-commerce businesses can reach 4x to 6x if they have strong brands and direct customer relationships. Transportation and logistics companies range from 3.5x to 5.5x depending on asset intensity and contract structure.

Several fundamental factors explain why technology companies trade at 8x EBITDA while restaurants trade at 3x. Recurring revenue is the most powerful driver. Industries with subscription models, long-term contracts, or high switching costs (SaaS, insurance, financial services) command premium multiples because their future revenue is more predictable and less dependent on constant new sales. For businesses under $1M in earnings, SDE vs EBITDA comparison explains which metric to use.

Profit margins also matter significantly. Technology companies often have gross margins of 70% to 85%, meaning each dollar of revenue converts to a much higher proportion of profit. Restaurants and retail businesses may have gross margins of 25% to 40%, leaving less room for profit after operating expenses. Higher margins mean more cash flow per dollar of revenue, which supports higher multiples.

Growth potential, capital intensity, and risk profile round out the picture. Industries with low capital requirements and high scalability (software, consulting) are worth more per dollar of current earnings than industries requiring heavy ongoing investment in equipment, inventory, or physical infrastructure.

Within every industry, larger businesses trade at higher EBITDA multiples. A plumbing company with $500,000 in EBITDA might sell for 3x ($1.5 million), while a plumbing company with $5 million in EBITDA might sell for 5x ($25 million). This "size premium" exists because larger businesses are perceived as lower risk: they have diversified customer bases, deeper management teams, established systems, and access to a larger pool of potential buyers.

The size premium is well-documented in transaction data. According to GF Data and PitchBook, EBITDA multiples for businesses with $1 million to $5 million in EBITDA average roughly 4x to 5x, while businesses with $5 million to $25 million in EBITDA average 5x to 7x. Businesses above $25 million in EBITDA regularly command 7x to 10x or more, depending on the industry.

Start with industry benchmarks from transaction databases like DealStats (formerly Pratt's Stats), BizBuySell, and GF Data. These databases aggregate actual transaction data and provide median and quartile multiples by industry and size. Free data is available from BizBuySell's annual insight reports, while more detailed data from DealStats or PitchBook requires a subscription. You can also explore our industry benchmarks page for data across 52 sectors.

Next, adjust the benchmark multiple based on your business's specific characteristics. Score your business on the key value drivers: growth rate (above or below industry average?), customer concentration, owner dependency, recurring revenue, margin profile, and competitive positioning. Businesses that score well on these factors deserve a multiple above the industry median. Those that score poorly will trade below.

When in doubt, use a range rather than a single number. If the industry benchmark is 4.5x EBITDA, a reasonable range for your business might be 3.5x to 5.5x depending on your specific situation. The midpoint gives you a base-case estimate, while the range shows the potential upside and downside. Estimate your business value using our free tool to see where you land within your industry's range.

Several macro trends are shaping EBITDA multiples in 2026. Interest rates remain elevated compared to the 2020 to 2021 period, which puts downward pressure on multiples because higher borrowing costs reduce what buyers can afford to pay. At the same time, private equity firms continue to hold record levels of dry powder (committed but uninvested capital), which creates competition for quality acquisitions and supports multiples for the best businesses.

Industry-specific trends are also at play. AI-driven efficiency gains are boosting multiples for technology and technology-enabled businesses. Healthcare consolidation continues to drive demand (and premiums) for physician practices and home health agencies. Meanwhile, traditional retail and food service face margin pressure from labor costs and evolving consumer preferences, keeping multiples in those sectors relatively flat.