Valuation benchmarks

EBITDA Multiples by Industry (2026)

What businesses actually sell for, sector by sector — the public-company average and the typical range a private business commands once size discounts are applied.

IndustryPublic EV/EBITDATypical private rangeEV/Sales
Technology & Software16.0×4.8×–11.2×5.0×
Real Estate14.0×4.2×–9.8×4.0×
Healthcare & Life Sciences13.0×3.9×–9.1×3.5×
Professional Services13.0×3.9×–9.1×2.0×
Hospitality & Travel13.0×3.9×–9.1×3.0×
Agriculture13.0×3.9×–9.1×2.0×
E-commerce & Retail12.0×3.6×–8.4×1.0×
Media & Entertainment12.0×3.6×–8.4×3.0×
Manufacturing11.0×3.3×–7.7×1.8×
Food & Beverage11.0×3.3×–7.7×1.5×
Financial Services11.0×3.3×–7.7×3.5×
Logistics & Transportation11.0×3.3×–7.7×1.2×
Energy & Utilities11.0×3.3×–7.7×3.0×
Construction11.0×3.3×–7.7×1.0×
Education9.0×2.7×–6.3×2.5×

Public EV/EBITDA and EV/Sales: Aswath Damodaran, NYU Stern (EV/EBITDA & EV/Sales by sector), January 2026. Typical private range applies SellSide's size discount (30–70% of the public multiple, smaller businesses at the lower end). Indicative, not a formal valuation.

What's your business worth?

Put your own revenue and EBITDA into our free calculator to get an indicative range for your sector, size and country.

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What is an EBITDA multiple?

An EBITDA multiple values a business as a multiple of its annual earnings before interest, tax, depreciation and amortisation. If a business earns $1m of EBITDA and sells on a 5× multiple, the enterprise value is $5m. It's the most common way to value profitable private businesses because EBITDA strips out financing and accounting choices, making companies comparable.

Why private businesses sell for less

The multiples in the first column are public-company averages. A private business almost never achieves them, for three reasons:

  • Size. Smaller companies carry more risk and a higher cost of capital, so a lower multiple.
  • Marketability.A private stake can't be sold instantly — buyers apply a discount for lack of marketability (typically 20–40%).
  • Owner dependence. If the business relies heavily on the founder, buyers price in the transition risk.

That's why the “typical private range” column sits well below the public average — and why the smallest businesses sit at the bottom of that range.

How these multiples are sourced

The public multiples come from Aswath Damodaran, NYU Stern (EV/EBITDA & EV/Sales by sector) (January 2026), one of the most widely cited free datasets in corporate finance, refreshed every January. We cross-check the overall level against PwC's Global M&A Industry Trends, where the global median has sat around 10–11× EBITDA. As SellSide closes deals, we blend in our own realised multiples from real transactions in these size brackets.

EBITDA multiples FAQ

What is a good EBITDA multiple?

It depends entirely on the industry and the size of the business. Across public markets the median sits around 10–11× EBITDA. Small private businesses typically sell for far less — often 3–6× — because of size and marketability discounts. Faster-growing, more predictable businesses earn higher multiples.

Why do private businesses sell for lower multiples than public companies?

The headline multiples are public-company averages. Private businesses are smaller, harder to sell quickly (a discount for lack of marketability), and often more owner-dependent, so buyers pay a lower multiple. The size discount widens the smaller the business.

How do I use an EBITDA multiple to value my business?

Multiply your annual EBITDA by an industry-appropriate multiple, then adjust for size and country risk. Our free business valuation calculator does this for you and returns an indicative range.

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