Business Valuation Multiples by Industry: The Power of Sector Consistency
The latest DealStats Value Index Digest (Q1 2026) has been released with a focus on the general EBITDA multiple trend across all sectors. However, the real story actually seems to be the boring long-term stability of Business Valuation Multiples by Industry.
For the majority of industries, the median EBTDA valuation multiple observed over the last twelve months (LTM) is nearly identical to the median observed over the last ten years.
Why General Valuation Multiple Averages Mislead
General market averages are often skewed by high-growth outliers in tech or finance. For a business owner in construction or wholesale, a “market average” is unhelpful.
What is possibly more helpful is multiples in their specific industry sector. As the data shows, these sector-specific EBITDA Business Valuation Multiples by Industry remain surprisingly consistent.
Analysing Business Valuation Multiples by Industry: 2026 Comparison
The following table illustrates the variance (or lack thereof) between long-term historical EBITDA medians (ten years) and the most recent 12-month period. Note how little the “Variance” column moves for traditional industries.
| Industry Sector | All-Time Median | Last 12 Months (LTM) | Variance (Change) |
|---|---|---|---|
| Other Services | 3.1x | 3.1x | 0.0 |
| Admin, Support & Waste Mgmt | 3.5x | 3.5x | 0.0 |
| Construction | 3.7x | 3.6x | -0.1 |
| Retail Trade | 3.9x | 3.7x | -0.2 |
| Accommodation and Food Service | 2.6x | 2.9x | +0.3 |
| Real Estate, Rental and Leasing | 3.6x | 4.0x | +0.4 |
| Health Care and Social Assistance | 5.0x | 4.4x | -0.6 |
| Transportation and Warehousing | 3.7x | 3.1x | -0.6 |
| Wholesale Trade | 5.2x | 4.3x | -0.9 |
| Manufacturing | 5.8x | 4.5x | -1.3 |
| Professional, Scientific & Technical | 5.6x | 4.2x | -1.4 |
| Higher Volatility Outliers | |||
| Information | 10.8x | 14.6x | +3.8 |
| Finance and Insurance | 7.5x | 11.5x | +4.0 |
Source: DealStats Value Index Digest Q1 2026, Exhibit 3. Selling Price represents Market Value of Invested Capital (MVIC).
The Lesson of Sector Valuation Multiple Consistency
For “workhorse” sectors like Construction and Admin/Other Services, the change in the median EBITDA multiple over a decade is effectively zero. This could suggests that the fundamental way these businesses are priced may not have significantly changed. However, be careful in your assumptions!
The only significant volatility is found in the Information and Finance sectors. These are the exceptions that prove the rule. Their significant variance (ranging between +3.8 and +4.0) could be driven by factors such as expected earnings growth and transaction size.
While these Business Valuation Multiples by Industry are based on North American data, the lesson of sector consistency may be a common one.
Be Wary of using average Valuation Multiples!
The DealStat multiples reflect information provided by North American business brokers, M&A advisors, SEC filings and the Canadian platform SEDAR. The information is based on observed transaction prices and reported EBITDA. The data relies on the reliability and consistency of reported EBITDA (is that normalised EBITDA, EBITDA last year, last twelve months, next twelve months?).
Each reported transaction may vary significantly in size and value, deal structure, earnings growth projections and specific cash flow risk. The simple application of a median multiple ignores all those fundamental factors.
Be very wary of simply applying a median multiple. It’s a dangerous misleading game!
If you need a valuation that goes beyond simple industry medians, see our Private Business Valuation services.
