ORIGINAL COMPARISON · AUGUST 2026

Enter owner earnings. See 26 market answers.

Type any annual SDE from $25K to $10M—or start with a preset—to see how the same earnings translate across reported US business-type multiples.

PROFIT-TO-VALUE MATRIX

Industry changes the starting point.

Every row uses the SDE you choose. Only the reported average business-type multiple changes, making the market spread easy to see.

Enter annual owner earnings (SDE)

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Showing $250,000 of annual SDE across 26 reported business-type multiples.

Lowest indication$435K

Nail salons · 1.74×

Middle of 26$665K

Median of the industry indications

Highest indication$1.22M

Car washes · 4.87×

Industry spread$782.5K

Same SDE, before company-specific factors

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Implied business values for $250,000 of annual seller's discretionary earnings, ranked by reported average cash-flow multiple
RankBusiness typeAverage SDE multipleImplied value
#1Car washes4.87×price ÷ SDE$1,217,500$250,000 × 4.87
#2Laundromats & coin laundries3.70×price ÷ SDE$925,000$250,000 × 3.70
#3Websites & ecommerce businesses3.37×price ÷ SDE$842,500$250,000 × 3.37
#4Daycare & child care centers3.28×price ÷ SDE$820,000$250,000 × 3.28
#5IT & software service businesses3.22×price ÷ SDE$805,000$250,000 × 3.22
#6Home health care businesses3.00×price ÷ SDE$750,000$250,000 × 3.00
#7Trucking companies3.00×price ÷ SDE$750,000$250,000 × 3.00
#8Insurance agencies2.87×price ÷ SDE$717,500$250,000 × 2.87
#9Auto repair shops2.85×price ÷ SDE$712,500$250,000 × 2.85
#10HVAC businesses2.83×price ÷ SDE$707,500$250,000 × 2.83
#11Electrical & mechanical contractors2.77×price ÷ SDE$692,500$250,000 × 2.77
#12Dental practices2.75×price ÷ SDE$687,500$250,000 × 2.75
#13Property management businesses2.66×price ÷ SDE$665,000$250,000 × 2.66
#14Staffing agencies2.66×price ÷ SDE$665,000$250,000 × 2.66
#15Plumbing businesses2.61×price ÷ SDE$652,500$250,000 × 2.61
#16Gyms & fitness centers2.54×price ÷ SDE$635,000$250,000 × 2.54
#17Moving & shipping businesses2.52×price ÷ SDE$630,000$250,000 × 2.52
#18Landscaping & yard services2.49×price ÷ SDE$622,500$250,000 × 2.49
#19Pest control businesses2.46×price ÷ SDE$615,000$250,000 × 2.46
#20Accounting & tax practices2.27×price ÷ SDE$567,500$250,000 × 2.27
#21Coffee shops & cafes2.27×price ÷ SDE$567,500$250,000 × 2.27
#22Cleaning businesses2.25×price ÷ SDE$562,500$250,000 × 2.25
#23Restaurants2.18×price ÷ SDE$545,000$250,000 × 2.18
#24Hair salons & barbershops2.10×price ÷ SDE$525,000$250,000 × 2.10
#25Food trucks2.03×price ÷ SDE$507,500$250,000 × 2.03
#26Nail salons1.74×price ÷ SDE$435,000$250,000 × 1.74

Swipe table to compare →

Source and scope

Calculations use public average cash-flow multiples reported by BizBuySell for completed US small-business sales during Q3 2021–Q2 2026. “Cash flow” refers to SDE. Averages are not a census, an offer, or a formal appraisal.

View source methodology

FROM COMPARISON TO VALUATION

The multiple answers only the first question.

The matrix isolates industry. A useful valuation also normalizes the earnings and evaluates the business a buyer would actually inherit.

01 · Verify earnings

Normalize SDE carefully.

One unsupported add-back can change every result in the table. Reconstruct owner benefit from actual financials before applying a multiple.

Build defensible SDE
02 · Match the market

Use the closest business type.

Business model matters more than a broad label. Open a row to inspect its reported revenue multiple, median sale price, and valuation factors.

Compare every benchmark
03 · Make it specific

Price transferability.

Growth, recurring revenue, owner dependence, customer concentration, assets, and deal terms can move a company away from the average.

Check the value drivers

YOUR ACTUAL BUSINESS · PRIVATE

Move from one input to the whole business.

The matrix isolates SDE and industry. Create a private account to add revenue, assets, and operating context for a company-specific market reference. Contribute only when you want to unlock richer anonymized cohorts and comparables.

Value my business

COMMON QUESTIONS

Reading the SDE matrix

How much is a business worth based on annual profit?

For many owner-operated small businesses, buyers start with seller’s discretionary earnings (SDE) rather than accounting net profit. Enter annual SDE in the matrix to multiply the same owner-earnings figure by reported average cash-flow multiples across 26 business types. A company-specific value still depends on transferability, growth, concentration, assets, and deal terms.

What is a business with $250,000 of SDE worth?

Applying the reported average cash-flow multiples for 26 specific business types produces indications from $435,000 to $1,217,500, with a median industry indication of $665,000. That is a market comparison, not a valuation of a particular company.

How is each value in the matrix calculated?

Each indication equals the selected annual SDE scenario multiplied by that business type’s reported average sale-price-to-cash-flow multiple. The matrix does not average revenue and SDE methods together.

Is SDE the same as net profit?

No. Seller’s discretionary earnings usually starts with pretax profit and adds back one owner’s compensation, interest, depreciation, amortization, and defensible personal or non-recurring expenses. Unsupported add-backs can overstate SDE.

Why can the same SDE imply different values by industry?

Buyer demand, capital requirements, recurring revenue, transferability, growth, concentration, and operating risk differ by business type. Industry is a useful starting lens, but the company’s own quality determines where it can land.

Does the comparison include real estate, debt, or working capital?

The matrix does not separately add real estate, subtract debt, or adjust working capital and inventory. Transaction structures differ, so those items must be evaluated when moving from a market reference to a company-specific valuation.