Small Business Valuation Multiples by Industry (2026 Data)
Most "typical multiple" figures online are guesses dressed up as data. The numbers below are sourced from real, closed small business sale transactions — Q3 2021 through Q2 2026 — not modelled or estimated.
The overall picture (2026)
The median small business sold in Q1 2026 went for $350,000 on $165,256 of median cash flow — a 2.7x cash flow (SDE) multiple. Across all businesses, the average SDE multiple sits around 2.6x–2.7x, and revenue multiples average 0.67x (ranging roughly 0.42x–1.2x depending on sector and margin profile).
By business size (EBITDA)
| EBITDA size | Typical multiple range |
|---|---|
| Sub-$1M EBITDA | 2x–3.5x |
| $1M–$5M EBITDA | 3x–5.5x |
| $5M+ EBITDA | 4x–7x |
By industry (SDE multiple)
Industries with recurring revenue, real property/equipment value, licensing barriers, or active private-equity buyer interest trade meaningfully above the ~2.6x average; distressed or commoditised retail trades well below it.
| Industry | Typical SDE multiple | Why |
|---|---|---|
| Car washes | ~5.8x | Real estate value + recurring/subscription revenue |
| Self-storage | ~4.6x | Real estate value, low operating complexity |
| Laundromats | ~4.0x | Recurring cash flow, low staffing dependency |
| HVAC / plumbing / trades with recurring contracts | 3.5x–5x | Recurring service revenue, active PE buyer interest |
| Dental / healthcare practices | 3.5x–5x+ | Licensing barriers, recurring patient base |
| General small business average | 2.6x–2.7x | Baseline across all sectors |
| Distressed / commoditised retail | ~1.4x | Low differentiation, high owner dependency, thin margins |
Why your business isn't "the average"
Even within one industry line, multiples move on real, specific factors: customer concentration, owner dependency, how much of the revenue is contracted versus one-off, and how clean the financial records are. Two car washes can genuinely be worth 4x and 6.5x depending on exactly these factors — the industry number is a real starting point for a conversation, never the final answer.
Want your own Normalised EBITDA and an indicative range using these real mechanics? Try the free Business Valuation Calculator — no email required.
The Business Sale Readiness & Valuation Toolkit runs a full sensitivity table from 1.5x to 5.0x against your own real numbers, not a single industry average.
Source: aggregated small business sale transaction data, Q3 2021–Q2 2026 (BizBuySell industry reporting and related 2026 market analyses). Figures are real, published ranges — not Forge estimates.
Next in your preparation journey: Business Sale Readiness Checklist: The 10 Areas That Actually Matter