Small business valuation multiples by industry

Most main-street businesses sell for 1.5 to 2.5 times the owner's true annual earnings (SDE). Online businesses are priced on profit instead, usually between 2 and 5 times a year. Both tables are below, drawn from reported closed sales rather than asking prices, and every figure is sourced.

Last updated: August 17, 2026

Typical price multiples for US main-street businesses. Revenue multiples apply to gross yearly sales. SDE multiples apply to seller's discretionary earnings: owner salary plus profit plus owner add-backs.
Business typeRevenue multiple, lowRevenue multiple, highSDE multiple, lowSDE multiple, high
Hair salon / Barbershop0.35x0.65x1.5x2.5x
Cleaning service0.5x0.9x1.8x2.8x
Landscaping / Lawn care0.45x0.85x1.8x2.8x
Restaurant / Cafe0.25x0.45x1.3x2.2x
Auto repair / Detailing0.4x0.75x1.9x3.1x
Retail shop0.3x0.6x1.8x3x
Other service business0.35x0.7x1.5x2.5x

Online businesses

Priced on profit rather than revenue, because margins online vary too much for a revenue multiple to mean anything. Small website and store deals are conventionally quoted per month; SaaS and agencies per year. Both columns describe the same thing.

Typical price multiples for online businesses, from reported closed sales. The monthly column is the annual multiple times twelve, which is how marketplace listings quote it.
Business typeAnnual profit multipleMonthly equivalentReported benchmark
E-commerce store (Shopify, Amazon FBA)2.5x to 4x30x to 48x3.98x
Content or affiliate site1.8x to 2.8x22x to 34x2.32x
Micro-SaaS or small software business3x to 4.5x36x to 54x3.9x
Marketing or services agency2.5x to 4x30x to 48x3x
Marketplace or directory1.6x to 2.8x19x to 34x2.02x

Read the benchmark column first. It is what deals actually closed at, and it is the only figure in this table taken directly from a published report. The range around it describes how much a business can move off that benchmark: the top end is an unusually strong one, with low churn, no single customer carrying the revenue, and an owner the business can do without. Most sellers land near the benchmark, not above it.

No multiple is published for newsletters or AI-services agencies. Neither has a traceable set of closed comparable sales, and a number without a source behind it is worse than no number. Work out your online business's range.

How to read this table

A business is usually priced from the stronger of two answers: a multiple of its yearly revenue, or a multiple of what the owner really earns. If the owner's true earnings are known, the SDE math usually gives the higher and more defensible number. SDE means seller's discretionary earnings: salary, plus profit, plus the personal expenses the business pays for.

How we source these ranges

These ranges are built from reported closed sales, not asking prices. Sellers ask more than buyers pay, and the gap is real: on salon sales the median asking price was $125,000 against a median sale price of $115,500. Anyone quoting listing multiples is quoting hope, not evidence. Full sources are listed below.

They are starting ranges, not appraisals. A specific business's documented number comes from its own tax returns. We review this table and update the date above whenever the ranges change.

Want the number for your business? Use the free calculator or get it documented from your tax returns.

Sources

  1. BizBuySell, Business Valuation Multiples by IndustryBusinesses sold Q3 2021 through Q2 2026, updated biannually · Aggregated closed sales reported to BizBuySell over a trailing five-year periodFigures are averages of closed sales reported to one marketplace, US only. A marketplace sees the deals listed on it, not every sale in the country.
  2. BizBuySell, Q1 2026 Insight ReportQ1 2026 · 2,345 closed transactions, $2B enterprise valueMedian sale price $350,000 on median cash flow of $165,256. Average cash flow multiple 2.7x across all industries.
  3. IBBA and M&A Source, Market Pulse Report, Q4 2025 (55th edition)Q4 2025, fielded January 1-15, 2026 · 350 brokers and advisors, 330 completed transactionsMedian SDE multiples by deal size: under $500K sells at 2.0x, $500K-$1M at 3.0x, $1M-$2M at 4.1x. Independent of marketplace data, which is why it is worth citing alongside.
  4. Empire Flippers, 2026 State of the Industry ReportCalendar year 2025, compared against 2024 · 161 deals, $45.6M total volume, average sale price $270,803Deals brokered by Empire Flippers only. Sellers asked an average 28.69x monthly profit and closed at 23.93x, so listing multiples overstate the market by roughly 17%.
  5. Acquire.com, Biannual Acquisition Multiples Report2025 data, published January 2026 · Not disclosed by the publisherCovers acquisitions under $10M enterprise value on one marketplace. Transaction count is not published, so the figure carries less weight than sources that disclose sample size.
  6. Flippa, H1 2026 closed-deal multiplesFirst half of 2026 · Not disclosed by the publisherMarketplace-reported closed deals. Sample size is not published, so treat these as directional rather than definitive.
  7. SaaS Capital, 2025 Private SaaS Company Valuations (13th annual)Published January 2025 · Survey of more than 1,500 private SaaS companiesRespondents skew toward $3M-$20M ARR, so 4.8x is a generous reference point for a smaller company. The spread is wide: the top decile averaged 14.2x and the bottom decile 1.9x.
  8. FE International, Digital agency valuation guidanceMay 2026 · None. This is advisory guidance, not a dataset.Published by an advisory firm from its own deal experience rather than a disclosed transaction set. Useful for the shape of the market, weaker as evidence than closed-sale data.

Every figure on this page traces to one of the sources above. Where no primary dataset exists for a category, we publish nothing rather than repeat a number we cannot stand behind.