Valuation Multiples

The tables below summarize earnings and revenue multiples based on sales of businesses on BizBuySell. These figures are valuable as relative indicators of business values but should not be relied upon to value a specific business.

About this Data

This data is an aggregation of sales reported during a trailing five-year period and is updated biannually. Current data is based on businesses sold from Q3 2019 through Q2 2024.

Cash flow and earnings multiples represent Sellers Discretionary Earnings (SDE) as reported by the business owners or business brokers closing the sale listing, divided by reported sales price. Revenue multiples represent gross revenue or gross sales reported, divided by reported sales price.

Prices of Reported Business Sales

The median sale price of the data set is $300,688, rising to $375,000 in Q2 of 2024. The majority of businesses in the data set sold for less than $1,000,000 – putting these multiples in the “main street” segment of small businesses.

5-Year Quarterly Trends

Median small business sale prices – and associated valuation multiples – rose through 2022 due to supply constraints and the economic climate caused by the Covid-19 pandemic. Increasing interest rates reigned in prices through 2023, though valuations have bounced back in 2024.

Average Revenue and Earnings Multiples by Sector

Average earnings multiples range from 2 to 3 across popular sectors, with the average across all sectors at 2.49. Revenue multiples range from 0.4 to 1.2, with the average across all businesses at 0.64. (For small business valuation purposes, cash flow to the owner (earnings) is a more reliable indicator than revenue.)

Industry Sector	Average Revenue Multiple	Average Cash Flow (Earnings) Multiple	Median Sale Price
Automotive and Boat	0.68	3.06	$475,000
Beauty and Personal Care	0.51	2.02	$125,000
Building and Construction	0.56	2.54	$700,000
Communication and Media	0.82	2.36	$312,500
Education and Children	0.83	2.95	$349,750
Entertainment and Recreation	0.85	2.64	$334,000
Financial Services	1.18	2.45	$405,000
Food and Restaurants	0.42	2.16	$199,000
Health Care and Fitness	0.74	2.67	$390,000
Manufacturing	0.72	2.94	$700,000
Online and Technology	1.08	3.19	$700,000
Pet Services	0.73	2.46	$199,000
Retail	0.49	2.53	$275,000
Service Businesses	0.79	2.48	$320,000
Transportation and Storage	0.62	2.02	$148,900
Wholesale and Distributors	0.52	2.79	$500,000

Average Revenue and Earnings Multiples By Industry

Looking at popular business industries, earnings multiples range from 1.5 on the low-end to 4 and higher for select high value categories.

Automotive and Boat	Revenue Multiple	Earnings Multiple
Auto Repair and Service Shops	0.63	2.79
Car Dealerships	0.43	3.00
Car Washes	1.96	5.07
Equipment Rental and Dealers	0.87	2.88
Gas Stations	0.44	3.55
Junk and Salvage Yards	0.86	4.05
Marine/Boat Service and Dealers	0.57	2.75
Towing Companies	0.90	3.20
Truck Stops	0.41	3.25
Beauty and Personal Care
Hair Salons and Barber Shops	0.48	1.94
Massage Businesses	0.45	2.13
Nail Salons	0.42	1.60
Spas	0.61	2.32
Tanning Salons	0.56	2.25
Building and Construction
Building Material and Hardware Stores	0.54	3.14
Concrete Businesses	0.56	2.36
Electrical and Mechanical Contracting Businesses	0.56	2.53
Heavy Construction Businesses	0.54	2.62
HVAC Businesses	0.57	2.72
Plumbing Businesses	0.63	2.47
Communication and Media
Magazines and Newspapers	0.67	2.09
Production Companies	0.89	2.70
Education and Children
Day Care and Child Care Centers	0.88	3.32
Preschools	0.93	3.27
Schools	0.71	2.43
Entertainment and Recreation
Art Galleries	0.57	1.96
Banquet Halls	1.14	3.34
Bowling Alleys	0.73	3.68
Casinos	0.87	2.32
Golf Courses and Services	0.71	2.78
Marinas and Fishing	0.95	2.96
Nightclubs and Theaters	0.67	3.25
Financial Services
Accounting and Tax Practices	1.04	2.19
Banking and Loan Businesses	0.89	2.68
Check Cashing Businesses	0.79	1.70
Financial Services Businesses	1.22	2.90
Insurance Agencies	1.51	2.89
Food and Restaurants
Bakeries	0.48	2.19
Bars, Pubs and Taverns	0.49	2.64
Breweries	0.58	3.58
Coffee Shops and Cafes	0.45	2.14
Donut Shops	0.66	2.40
Food Trucks	0.63	1.69
Ice Cream and Frozen Yogurt Shops	0.56	2.38
Juice Bars	0.41	1.97
Restaurants	0.38	2.08
Health Care and Fitness
Assisted Living and Nursing Homes	1.40	4.42
Dance, Pilates, and Yoga Studios	0.60	1.91
Dental Practices	0.70	2.36
Gyms and Fitness Centers	0.65	2.41
Home Health Care Businesses	0.62	3.00
Medical Practices	0.73	2.17
Manufacturing
Auto, Boat and Aircraft Manufacturers	0.71	3.25
Chemical and Related Product Manufacturers	1.02	3.47
Clothing and Fabric Manufacturers	0.56	2.58
Electronic and Electrical Equipment Manufacturers	0.78	3.04
Food and Related Product Manufacturers	0.69	2.74
Furniture and Fixture Manufacturers	0.59	2.69
Glass, Stone, and Concrete Manufacturers	0.66	2.74
Industrial and Commercial Machinery Manufacturers	0.77	3.51
Lumber and Wood Products Manufacturers	0.63	3.19
Machine Shops and Tool Manufacturers	0.82	3.23
Medical Device and Product Manufacturers	0.75	2.52
Metal Product Manufacturers	0.73	3.06
Packaging Businesses	0.76	3.18
Paper Manufacturers and Printing Businesses	0.56	2.46
Rubber and Plastic Products Manufacturers	0.91	3.60
Sign Manufacturers and Businesses	0.65	2.42
Online and Technology
Cell Phone and Computer Repair and Service Businesses	0.46	1.93
Graphic and Web Design Businesses	1.09	2.75
IT and Software Service Businesses	0.95	2.97
Software and App Companies	1.67	3.25
Websites and Ecommerce Businesses	1.10	3.29
Pet Services
Dog Daycare and Boarding Businesses	1.08	3.11
Pet Grooming Businesses	0.60	2.11
Pet Stores and Supply Businesses	0.44	2.44
Retail
Bike Shops	0.43	2.62
Clothing and Accessory Stores	0.49	2.27
Convenience Stores	0.38	2.26
Dollar Stores	0.34	1.37
Flower Shops	0.45	1.94
Furniture and Furnishings Stores	0.53	2.55
Grocery Stores and Supermarkets	0.33	2.64
Health Food and Nutrition Businesses	0.52	2.14
Jewelry Stores	0.52	2.00
Liquor Stores	0.46	3.09
Nursery and Garden Centers	0.57	2.85
Pawn Shops	0.93	2.56
Pharmacies	0.38	2.57
Smoke Shops	0.44	1.83
Vending Machine Businesses	1.13	2.36
Service Businesses
Architecture and Engineering Firms	0.78	2.66
Catering Companies	0.43	2.00
Cleaning Businesses	0.67	2.11
Commercial Laundry Businesses	1.21	2.75
Dry Cleaners	0.72	2.05
Funeral Homes	1.70	4.30
Landscaping and Yard Service Businesses	0.68	2.38
Laundromats and Coin Laundry Businesses	1.23	3.40
Legal Services and Law Firms	0.70	1.84
Locksmith Businesses	0.66	2.30
Medical Billing Businesses	1.25	3.43
Pest Control Businesses	0.94	2.42
Property Management Businesses	0.92	2.65
Security Businesses	0.77	2.61
Staffing Agencies	0.62	2.76
Waste Management and Recycling Businesses	0.99	3.24
Transportation and Storage
Delivery, Freight and Service Routes	0.60	1.86
Limo and Passenger Transportation Businesses	0.78	2.47
Moving and Shipping Businesses	0.65	2.50
Storage Facilities and Warehouses	0.86	2.81
Trucking Companies	0.64	3.01
Wholesale and Distributors
Durable Goods Wholesalers and Distributors	0.54	2.86
Nondurable Goods Wholesalers and Distributors	0.51	2.91

How Pricing Multiples are Used in Business Valuations

Business valuation multiples are used to benchmark the value of a business on the open market. By comparing a business for sale to other, similar businesses that recently sold in the same market, a market value can be estimated. This market value serves as a starting point to which business-specific adjustments can be made to determine an appropriate asking price.