All industry multiples

CONSTRUCTION · AUGUST 2026 MARKET DATA

How much is your plumbing business worth?

Apply the reported 2.61× SDE and 0.69× revenue averages to your numbers, then inspect what makes one plumbing business differ from another.

Cash flow multiple

2.61×Price ÷ seller’s discretionary earnings

Revenue multiple

0.69×Price ÷ annual gross revenue

Versus Construction

-2%Cash-flow multiple versus the 2.65× broad-sector average

Versus all businesses

+1%Cash-flow multiple versus 2.58× overall

ASKING VS. CLOSED SALE · FULL YEAR 2025

Reported plumbing business deals averaged 93% of asking.

Based on 61 reported sales. Use the ratio to understand category-level negotiation—not as a forecast for one transaction.

Average sale / ask93%Average transaction-level ratio
Median asking price$1,000,000Separate category median
Median closed price$837,500Separate category median
Median time on market209 days61 reported sales

Do not subtract the two medians. Median asking and sale prices may describe different transactions. The source's average sale-to-ask ratio is the supported negotiation measure.

CLOSED-SALE DISTRIBUTION · 2021–2025

The middle 50% sold between 1.66× and 3.15× SDE.

This range comes from 226 reported sold listings—not current asking prices. It shows the spread that a single average hides.

Seller’s discretionary earnings2.24× median
25th1.66×Median2.24×75th3.15×
Annual revenue0.59× median
25th0.42×Median0.59×75th0.85×
Reported sales226Listings analyzed
Typical annual revenue$1,174,514Median reported revenue
Typical owner earnings$311,598Median reported SDE
Time on market202 daysMedian reported time to sell

Why the headline average differs: the 2.61× figure above uses the newer rolling Q3 2021–Q2 2026 table. This range uses the dedicated 2021–2025 report, which publishes quartiles. The periods remain separate rather than being blended.

See where my business lands

COMPANY-SPECIFIC DILIGENCE

What buyers examine beyond the average.

These factors help explain why two businesses in the same category can sell at different multiples. They are diligence questions—not automatic percentage adjustments.

01Service-agreement and repeat-customer revenue
02Licensed plumber retention and field supervision
03Emergency-service mix and owner dependence

WORKED MARKET REFERENCE

How the two common methods compare

For an example plumbing business with $1,000,000 in annual revenue and $250,000 in SDE:

SDE method$652,500$250,000 × 2.61
Revenue method$690,000$1,000,000 × 0.69

The indications can differ because margins vary. A personalized market reference should use the company’s actual revenue and normalized SDE, then consider transferability and deal terms separately.

Calculate my private reference

REUSE THIS BENCHMARK

Give readers a calculator.

Embed an interactive SDE-and-revenue calculator with a visible source link, or reuse the period-specific citation and share card. The kit contains public category aggregates—never a contributed profile or transaction row.

Download share card Preview calculator embed
CITATION PREVIEW

Plumbing business valuation benchmark: 2.61× SDE, 0.69× revenue, and $699,000 median reported sale price. Reported US closed-business aggregates from BizBuySell, Q3 2021–Q2 2026. Analysis and source notes: https://businessvaluation.fyi/business-valuation/plumbing-business?utm_source=shared_benchmark&utm_medium=referral&utm_campaign=industry_benchmark

COMMON QUESTIONS

Reading this plumbing business benchmark

How much is my plumbing business worth?

A company-specific answer requires normalized earnings, revenue, and its operating risks. As a public starting point, reported sales in this category average 2.61× seller’s discretionary earnings and 0.69× annual revenue. The reported median sale price is $699,000.

What percentage of asking do reported plumbing business sales achieve?

Across 61 reported 2025 sales, the source reports an average sale-to-ask ratio of 93%. That is an average of transaction-level ratios, not a promise that every seller discounted by the same amount.

How long do reported plumbing business sales take?

The reported median was 209 days on market during 2025. Preparation, pricing, buyer financing, diligence, lease transfer, and deal terms can make an individual sale faster or slower.

What range did reported plumbing business sales fall in?

In the dedicated 2021–2025 report, the middle 50% of sold businesses had SDE multiples between 1.66× and 3.15×. The median was 2.24×.

How should I use the 2.61× multiple?

Apply it first to normalized SDE, not tax-return profit without review. Then cross-check the revenue method and examine the business-specific risks a buyer would inherit.

Does this tell me exactly what my plumbing business is worth?

No. It is a reported-sale average, not an appraisal or offer. Company size, margins, growth, transferability, assets, liabilities, geography, and deal terms can produce a different outcome.

Source and scope

Public aggregates reported by BizBuySell for closed US sales of plumbing businesses. The headline multiples cover Q3 2021–Q2 2026; asking-price, sale-price, and time-on-market metrics cover the full 2025 calendar year; the quartile distribution covers 2021–2025. These are useful relative indicators, not a formal appraisal, offer, or complete census.