Common Industry Multiples & Sales Price in 2025

Looking to sell or buy a business? You’ll likely need to know the industry’s EBITDA, multiples, and sales price.

We scoured the internet to bring you this comprehensive list of common industry multiples and sale prices in 2025.

What is EBITDA?

EBITDA, short for earnings before interest, taxes, depreciation, and amortization, is a way for businesses to measure a business’s profitability by excluding non-operational expenses like interest, taxes, and depreciation. It’s often used in business valuation when a company is trying to sell or buy a business.

To calculate the business in question’s EBITDA, follow this formula:

EBITDA = Net Income + Interest + Taxes + Depreciation + Amortization.

The exclusion of non-operational expenses makes it easier to compare performance across different companies, but it’s important to remember it doesn’t account for capital expenditures or actual cash flow.

EBITDA Multiples by Industry

Here are common EBITDA multiples across different industries, according to Equidam.

Industry	EBITDA Multiple
Advanced Medical Equipment & Technology	21.66
Advertising & Marketing	11.94
Aerospace & Defense	17.91
Agricultural Chemicals	12.47
Airlines	8.42
Airport Operators & Services	8.42
Aluminum	7.82
Apparel & Accessories	13.19
Apparel & Accessories Retailers	11.71
Appliances, Tools & Housewares	15.55
Auto & Truck Manufacturers	9.84
Auto Vehicles, Parts & Service Retailers	11.19
Auto, Truck & Motorcycle Parts	8.55
Banks*	17.98
Biotechnology & Medical Research	15.32
Brewers	13.89
Broadcasting**	7.87
Business Support Services**	15.19
Call Center Services	15.44
Cleaning Services	15.44
Commercial Educational Services	10.92
Corporate Accounting Services	15.44
Data Processing Services	15.44
Exhibition & Conference Services	15.44
Health, Safety & Fire Protection Equipment	9.43
Industrial Design Services	15.44
Industrial Equipment Rental	15.44
Legal Services	15.44
Maintenance & Repair Services	15.44
Management Consulting Services	15.44
Office Equipment & Supplies Rental	15.44
Transaction & Payment Services	15.44
Translation & Interpretation Services	15.44
Other Business Support Services	15.44
Other Business Support Supplies	9.43
Business Support Supplies	9.43
Casinos & Gaming	15.09
Closed End Funds	16.81
Coal	4.07
Commercial Printing Services	12.2
Commercial REITs	21.66
Commodity Chemicals	12.71
Communications & Networking	14.28
Computer & Electronics Retailers	11.71
Computer Hardware	18.66
Construction & Engineering	9.4
Construction Materials	11.51
Construction Supplies & Fixtures	10.17
Consumer Lending*	17.98
Consumer Publishing	12.2
Corporate Financial Services*	17.98
Courier, Postal, Air Freight & Land-based Logistics	13.1
Department Stores	15.61
Discount Stores	11.84
Distillers & Wineries	13.89
Diversified Chemicals	7.98
Diversified Industrial Goods Wholesalers	8.93
Diversified Investment Services	16.81
Diversified Mining	7.82
Diversified REITs	21.66
Drug Retailers	11.71
Electric Utilities	9.86
Electrical Components & Equipment	15.55
Electronic Equipment & Parts	15.55
Employment Services	15.44
Entertainment Production	15.78
Environmental Services & Equipment	14.04
Exchange-Traded Funds	16.81
Financial & Commodity Market Operators & Service Providers	28.48
Fishing & Farming**	9.75
Agricultural Biotechnology	9.75
Agricultural Consultancy Services	9.75
Agriculture Support Services	9.75
Animal Breeding	9.75
Animal Feed	9.75
Aquaculture	9.75
Cattle Farming	9.75
Coffee, Tea & Cocoa Farming	9.75
Commercial Fishing	9.75
Commercial Nurseries	9.75
Fishing & Farming Wholesale	9.71
Fur Farming	9.75
Grain (Crop) Production	9.75
Hog & Pig Farming	9.75
Organic Farming	9.75
Poultry Farming	9.75
Sheep & Specialty Livestock Farming	9.75
Sugarcane Farming	9.75
Vegetable, Fruit & Nut Farming	9.75
Other Fishing & Farming	9.75
Food Processing	12.15
Food Retail & Distribution**	9.35
Beer, Wine & Liquor Stores	9.29
Food Markets	9.29
Food Wholesale	9.71
Supermarkets & Convenience Stores	9.29
Tobacco Stores	9.29
Vending Machine Providers	9.29
Other Food Retail & Distribution	9.29
Footwear	17.31
Forest & Wood Products	10.15
Gold	8.81
Ground Freight & Logistics	9.98
Healthcare Facilities & Services	12.44
Heavy Electrical Equipment	15.55
Heavy Machinery & Vehicles	14.74
Highways & Rail Tracks	13.31
Home Furnishings	9.74
Home Furnishings Retailers	12.92
Home Improvement Products & Services Retailers	12.92
Homebuilding	8.03
Hotels, Motels & Cruise Lines	15.09
Household Electronics	11.44
Household Products	15.11
Independent Power Producers	8.71
Industrial Conglomerates	8.93
Industrial Machinery & Equipment	14.74
Insurance Funds	16.81
Integrated Oil & Gas	5.33
Integrated Telecommunications Services	6.88
Investment Banking & Brokerage Services*	17.98
Investment Holding Companies	16.81
Investment Management & Fund Operators	16.81
Iron & Steel	6.9
IT Services & Consulting	14.68
Leisure & Recreation**	11.79
Adventure Sports Facilities & Ski Resorts	11.79
Amusement Parks and Zoos	11.79
Golf Courses	11.79
Guided Tour Operators	11.79
Gyms, Fitness and Spa Centers	11.79
Hunting & Fishing	11.79
Marinas	11.79
Movie Theaters & Movie Products	11.79
Museums & Historic Places	11.79
Professional Sports Venues	11.79
Public Sport Facilities	11.79
Theatres & Performing Arts	11.79
Travel Agents	11.79
Other Leisure & Recreation	11.79
Life & Health Insurance	7.22
Managed Healthcare	11.06
Marine Freight & Logistics	6.12
Marine Port Services	6.12
Medical Equipment, Supplies & Distribution	20.07
Mining Support Services & Equipment	7.82
Miscellaneous Specialty Retailers	11.71
Multiline Insurance & Brokers	8.14
Multiline Utilities	9.86
Mutual Funds	16.81
Natural Gas Utilities	9.86
Non-Alcoholic Beverages	17.27
Non-Gold Precious Metals & Minerals	8.81
Non-Paper Containers & Packaging	9.29
Office Equipment	9.43
Oil & Gas Drilling	6.44
Oil & Gas Exploration and Production	4.22
Oil & Gas Refining and Marketing	8.65
Oil & Gas Transportation Services	8.65
Oil Related Services and Equipment	6.44
Online Services**	20.44
Content & Site Management Services	20.44
E-commerce & Marketplace Services	20.44
Internet Gaming	20.44
Internet Security & Transactions Services	20.44
Search Engines	20.44
Social Media & Networking	20.44
Other Online Services	20.44
Paper Packaging	9.29
Paper Products	10.15
Passenger Transportation, Ground & Sea	13.1
Pension Funds	16.81
Personal Products	20.07
Personal Services**	14.94
Accounting & Tax Preparation	15.44
Child Care & Family Services	15.44
Consumer Goods Rental	15.44
Consumer Repair Services	15.44
Funeral Services	15.44
General Education Services	10.92
Personal Care Services	15.44
Personal Legal Services	15.44
Other Personal Services	15.44
Pharmaceuticals	14.6
Phones & Handheld Devices	14.16
Professional Information Services	11.38
Property & Casualty Insurance	9.25
Real Estate Rental, Development & Operations	13.21
Real Estate Services	16.5
Recreational Products	11.79
Reinsurance	8.52
Renewable Energy Equipment & Services	13.95
Renewable Fuels	13.95
Residential REITs	21.66
Restaurants & Bars	16.48
Semiconductor Equipment & Testing	19.32
Semiconductors	20.98
Shipbuilding	6.12
Software	28.48
Specialized REITs	21.66
Specialty Chemicals	12.47
Specialty Mining & Metals	7.82
Textiles & Leather Goods	13.19
Tires & Rubber Products	6.94
Tobacco	9.33
Toys & Children’s Products	11.79
UK Investment Trusts	16.81
Uranium	8.71
Water & Related Utilities	12.67
Wireless Telecommunications Services	7.37

Price/Sales by Industry

Here are the price/sales ratio by industry, according to NYU.

The Price-to-Sales (P/S) Ratio measures how much investors are paying for each dollar of a company’s revenue. It’s calculated by dividing a company’s market capitalization by its total sales, or the price per share by sales per share.

This metric is especially useful for assessing companies that aren’t yet profitable, focusing solely on revenue. A high P/S ratio suggests strong growth potential, while a low ratio may indicate undervaluation or challenges. Comparing the P/S ratio to industry peers provides better context for its significance.

Industry	Price/Sale
Advertising	1.82
Aerospace/Defense	2.03
Air Transport	0.39
Apparel	0.86
Auto & Truck	2.01
Auto Parts	0.63
Bank (Money Center)	2.65
Banks (Regional)	2.83
Beverage (Alcoholic)	3.17
Beverage (Soft)	3.69
Broadcasting	0.5
Brokerage & Investment Banking	2.28
Building Materials	1.86
Business & Consumer Services	2.35
Cable TV	1.28
Chemical (Basic)	0.85
Chemical (Diversified)	0.75
Chemical (Specialty)	2.19
Coal & Related Energy	1.24
Computer Services	1.12
Computers/Peripherals	5.28
Construction Supplies	1.79
Diversified	2.13
Drugs (Biotechnology)	6.44
Drugs (Pharmaceutical)	4.51
Education	2.07
Electrical Equipment	2.63
Electronics (Consumer & Office)	0.82
Electronics (General)	1.97
Engineering/Construction	0.93
Entertainment	2.52
Environmental & Waste Services	2.8
Farming/Agriculture	0.79
Financial Svcs. (Non-bank & Insurance)	4.35
Food Processing	1.41
Food Wholesalers	0.28
Furn/Home Furnishings	0.75
Green & Renewable Energy	3.2
Healthcare Products	4.75
Healthcare Support Services	0.53
Heathcare Information and Technology	4.76
Homebuilding	1.26
Hospitals/Healthcare Facilities	0.88
Hotel/Gaming	3.03
Household Products	3.02
Information Services	1.81
Insurance (General)	2.18
Insurance (Life)	0.97
Insurance (Prop/Cas.)	1.19
Investments & Asset Management	4.3
Machinery	2.7
Metals & Mining	2.69
Office Equipment & Services	0.82
Oil/Gas (Integrated)	1.26
Oil/Gas (Production and Exploration)	2.23
Oil/Gas Distribution	2.15
Oilfield Svcs/Equip.	0.51
Packaging & Container	0.9
Paper/Forest Products	0.8
Power	1.95
Precious Metals	3.65
Publishing & Newspapers	1.16
R.E.I.T.	6.54
Real Estate (Development)	2.49
Real Estate (General/Diversified)	4.08
Real Estate (Operations & Services)	1.14
Recreation	1.21
Reinsurance	0.59
Restaurant/Dining	3.41
Retail (Automotive)	0.68
Retail (Building Supply)	1.83
Retail (Distributors)	1.4
Retail (General)	1.43
Retail (Grocery and Food)	0.28
Retail (REITs)	7.74
Retail (Special Lines)	0.76
Rubber& Tires	0.2
Semiconductor	10.2
Semiconductor Equip	5.08
Shipbuilding & Marine	1.36
Shoe	2.79
Software (Entertainment)	6.01
Software (Internet)	7.63
Software (System & Application)	10.39
Steel	0.86
Telecom (Wireless)	2.18
Telecom. Equipment	3.4
Telecom. Services	1.07
Tobacco	3.62
Transportation	1.31
Transportation (Railroads)	5.28
Trucking	1.55
Utility (General)	2.25
Utility (Water)	5.29
Total Market	2.35
Total Market (without financials)	2.3

Pros and Cons of EBITDA Multiples

There are advantages and disadvantages to using EBITDA to measure a company’s value.

Pros:

• Simplifies Comparisons Across Companies: It focuses on a company’s core operations without variables like debt and taxes, making it easier to compare businesses across different industries or regions
• Removes Non-Operational Factors: Excluding interest, taxes, depreciation, and amortization allows for a clearer view of a company’s performance​
• Good for Evaluating Large Acquisitions: EBITDA is often used in mergers and acquisitions to assess the value of a company’s ongoing earnings
• Focus on Cash Flow Potential: It provides insight into the company’s potential to generate cash flow, which investors​ need
• Useful for Leveraged Companies: It’s great for evaluating companies with a lot of debt or capital structures
• Helps Evaluate Profitability: It’s effective in assessing whether a company can generate profit from its operations without being affected by financing or tax strategies​

Cons:

• Ignores Capital Expenditures: EBITDA overlooks important capital expenditures, which can be misleading for industries that require heavy investment in assets​
• Not a Cash Flow Metric: EBITDA focuses on earnings but doesn’t directly measure cash flow, which is important in determining financial health
• Can Be Manipulated: Companies can present a more favorable picture by emphasizing EBITDA, glossing over important financial issues such as debt servicing and operational inefficiencies​
• Excludes Changes in Working Capital: EBITDA doesn’t account for fluctuations in working capital, which can significantly impact cash flow
• Overlooks Taxes and Interest: It removes interest and tax expenses, which can obscure the real financial burden faced by highly leveraged companies
• Skewed for High-Capital-Intensive Businesses: For industries with significant capital investments (like manufacturing or energy), EBITDA can overestimate profitability by ignoring depreciation, leading to an incomplete view

EBITDA vs Other Valuation Metrics

Taking into account these cons, you may want to look further into other valuation metrics, depending on the industry your business is in, its size, and other special considerations unique to your company.

Check out these alternative options to EBITDA and see if they may be a better fit for your business:

• Net Income
  • What it is: Net Income is the profit remaining after all expenses, including interest, taxes, and depreciation, have been deducted from total revenue.
  • Difference from EBITDA: Unlike EBITDA, which focuses solely on core operating profit, Net Income considers the full impact of financial and tax-related decisions, providing a “bottom-line” view.
  • When to use: Net Income may be a better metric for businesses with high debt, complex tax structures, or significant non-operational expenses, as it reflects the actual earnings available to shareholders.

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• Revenue Multiples
  • What it is: Revenue Multiples are valuation metrics that express the value of a business as a multiple of its total sales or revenue.
  • Difference from EBITDA: Revenue Multiples don’t account for profitability, making them distinct from EBITDA, which focuses on the operating earnings aspect. They’re more relevant to businesses prioritizing growth over immediate profit.
  • When to use: Revenue Multiples are useful for high-growth or early-stage companies with limited profitability, as they allow valuation based on revenue potential rather than current earnings.

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• Discounted Cash Flow (DCF)
  • What it is: DCF is a valuation method that calculates the present value of projected future cash flows, adjusted by a discount rate to account for the time value of money.
  • Difference from EBITDA: While EBITDA looks at current operating earnings, DCF considers long-term cash flow potential, which can be essential for businesses with significant growth opportunities or planned future expansion.
  • When to use: DCF is ideal for businesses with predictable cash flows and growth potential, allowing investors to evaluate a company’s value based on future earnings, rather than just its current profitability.

Frequently Asked Questions

What is the SaaS multiple for 2025?

The SaaS multiple for 2025 is around 6.

How much is a business worth with $2 million in sales?

Depending on the industry, a business with $2 million in sales is worth anywhere between $1 million (with a 0.5X multiplier) up to $10 million (with 5X multiplier).

What is the average multiple for a business valuation?

The average multiple for a business valuation ranges between 1.5x-3x.

What is a typical multiple of revenue?

A typical multiple of revenue, depending on other factors like industry, is 1 or 2.