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AUGUST 2026 MARKET DATA

Service business valuation multiples

See what reported US sales of service businesses imply about cash-flow multiples, revenue multiples, and typical sale prices.

Median reported sale price

$350,000Reported sales from Q3 2021–Q2 2026

Cash flow multiple

2.61×Price ÷ seller’s discretionary earnings

Revenue multiple

0.83×Price ÷ annual gross revenue

Sector rank

#10By cash-flow multiple among 16 sectors

Versus all businesses

+1%Cash-flow multiple versus 2.58× overall

ORIGINAL INDEX SIGNAL

Private transaction evidence for service businesses, from Main Street to $1B+.

Independently indexed as of August 14, 2026. These non-identifying records add a second market lens beyond the public sale averages above. Counts reveal evidence depth—not a universal multiple. Percentiles and individual rows stay protected. Explore the full evidence map.

Under $1M134indexed records
$1M–$10M40indexed records
$10M–$50M36indexed records
$50M–$250M121indexed records
$250M–$1B113indexed records
$1B+102indexed records
Qualified under-$1M observations97+Smallest recent sample across revenue and EBITDA multiples
Public size coverage6 / 6Service businesses · a blank may be zero or privacy-withheld
Contributor view25th · median · 75thShare an operating profile to see the protected range
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WORKED MARKET REFERENCE

How the two common methods compare

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

SDE method$652,500$250,000 × 2.61
Revenue method$830,000$1,000,000 × 0.83

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

NEARBY BENCHMARKS

Detailed industryCleaning business2.25× cash flowDetailed industryLandscaping business2.49× cash flowDetailed industryLaundromat3.70× cash flowDetailed industryPest control business2.46× cash flow

COMMON QUESTIONS

Reading this service business benchmark

What is the average service business cash-flow multiple?

Reported sales in this category average 2.61× seller’s discretionary earnings and 0.83× annual revenue. The reported median sale price is $350,000.

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 service 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 service businesses. The headline multiples cover Q3 2021–Q2 2026. The separate businessvaluation.fyi index adds privacy-protected transaction counts for the broader service businesses sector as of 2026-08-14; it does not expose individual deals or valuation multiples. These are useful relative indicators, not a formal appraisal, offer, or complete census.

Headline source Original index map