EBITDA Multiples by Industry: 2026 Table

Two companies in the same industry with identical earnings routinely sell for multiples a full turn apart. The spread between the low and high columns above is not noise; it is the market pricing five specific risks. Owner dependency is the largest: a business that cannot run for two weeks without its owner sells near the bottom of the range because the buyer is purchasing a job, not an asset. Customer concentration is second; when one client exceeds 20 percent of revenue, buyers discount the earnings that client represents.

On the upside, recurring revenue under contract, clean financial statements a lender can underwrite, three or more years of growth, and transferable licenses or certifications each push a business toward the high column. Capital intensity matters too: industries where EBITDA overstates true cash flow because equipment must constantly be replaced (trucking, manufacturing, restaurants) trade at structurally lower EBITDA multiples than asset-light professional services. Average margins in the right-hand column show why: a 6 percent margin restaurant and a 20 percent margin agency are different machines even at the same revenue.

For the full framework on how these adjustments are applied, see the valuation methodology behind the calculator, or the plain-English walkthrough in the complete guide to valuing a business.

Use the SDE multiples column if you own and operate the business yourself: SDE adds your salary, perks, and one-time expenses back to profit because an incoming owner-operator captures all of it. Use the EBITDA multiples column if the business runs under hired management or you are talking to private equity or strategic buyers, since they must pay a manager out of earnings before anything reaches them. This is why SDE multiples look lower than EBITDA multiples for the same industry even though they describe the same businesses: the earnings base is bigger. Revenue multiples are the cross-check, most useful for high-growth or pre-profit companies. The mechanics and a worked example are in the SDE versus EBITDA guide, and the glossary entry on seller's discretionary earnings covers the add-back rules.