PROFIT ANSWER · 26 BUSINESS TYPES

How much is a business worth with $100,000 profit?

If $100,000 is normalized seller’s discretionary earnings (SDE), the 26 reported U.S. business-type averages imply $174,000 to $487,000, with a $266,000 median indication.

FIRST: DEFINE “PROFIT”

Net profit is not automatically the number buyers multiply.

For an owner-operated business, buyers commonly use seller’s discretionary earnings: reported profit reconciled for one owner’s compensation and benefits, financing and non-cash expenses, and supportable one-time or non-operating items.

Turn my profit into SDE

SAME SDE · DIFFERENT BUSINESS TYPES

The industry spread at $100K SDE.

These are category-level indications created by holding SDE constant and changing only the reported average cash-flow multiple.

LOWEST INDICATION$174,000

Nail salons

1.74× average cash-flow multiple

MEDIAN OF 26 INDICATIONS$266,000

Middle of the comparison

Not an industry-wide recommended multiple

HIGHEST INDICATION$487,000

Car washes

4.87× average cash-flow multiple

ALL 26 PUBLIC COMPARISONS

What $100,000 of SDE maps to by business type.

Sorted by implied value. Open a business type for its sale price, revenue, cash flow, multiple, and transaction-count context.

Business type	Average SDE multiple	Implied value
Car washes	4.87×	$487,000
Laundromats & coin laundries	3.70×	$370,000
Websites & ecommerce businesses	3.37×	$337,000
Daycare & child care centers	3.28×	$328,000
IT & software service businesses	3.22×	$322,000
Home health care businesses	3.00×	$300,000
Trucking companies	3.00×	$300,000
Insurance agencies	2.87×	$287,000
Auto repair shops	2.85×	$285,000
HVAC businesses	2.83×	$283,000
Electrical & mechanical contractors	2.77×	$277,000
Dental practices	2.75×	$275,000
Property management businesses	2.66×	$266,000
Staffing agencies	2.66×	$266,000
Plumbing businesses	2.61×	$261,000
Gyms & fitness centers	2.54×	$254,000
Moving & shipping businesses	2.52×	$252,000
Landscaping & yard services	2.49×	$249,000
Pest control businesses	2.46×	$246,000
Accounting & tax practices	2.27×	$227,000
Coffee shops & cafes	2.27×	$227,000
Cleaning businesses	2.25×	$225,000
Restaurants	2.18×	$218,000
Hair salons & barbershops	2.10×	$210,000
Food trucks	2.03×	$203,000
Nail salons	1.74×	$174,000

Calculation: $100,000 SDE × each business type’s reported average earnings multiple. Values are rounded to the nearest dollar.

WHAT CHANGES HERE

At $100K, owner dependence can matter as much as industry.

This is typically an owner-operated Main Street business. A buyer will test whether the reported earnings include a full owner benefit, whether another person can perform the owner’s work, and whether the customer base and systems transfer. The industry table is a market comparison—not a substitute for those company-specific checks.

TURN THE COMPARISON INTO YOUR VALUATION

Three checks before treating a benchmark as yours.

Normalize the earnings

Reconcile profit into supportable SDE. Separate recurring operations from personal, one-time, financing, and non-cash items.

Calculate SDE

Choose the right market

SDE is most useful for owner-operated businesses. Management-run lower-middle-market companies are usually compared using adjusted EBITDA.

Compare company sizes

Apply company evidence

Use your actual growth, recurrence, customer mix, owner role, geography, and systems to move beyond a category average.

Start privately

COMPARE THE PROFIT LADDER

What another SDE amount maps to.

$100K PROFIT / SDE$174K–$487K $250K PROFIT / SDE$435K–$1.2M $500K PROFIT / SDE$870K–$2.4M $1M PROFIT / SDE$1.7M–$4.9M

SOURCE CONTRACT

Public category averages. No private transaction exposed.

The Q3 2021–Q2 2026 average cash-flow multiples come from BizBuySell’s published industry benchmark table. We multiply each reported category average by the same SDE amount and keep the categories separate. This page does not publish any individual transaction, proprietary comparable, or contributor record.

Open the source table Browse downloadable public data

COMMON QUESTIONS

$100K profit valuation, without the shortcut.

How much is a business worth with $100,000 in annual profit?

If $100,000 is normalized seller’s discretionary earnings (SDE), the 26 reported U.S. business-type averages imply $174,000 to $487,000, with a $266,000 median indication. That comparison applies only when “profit” has been normalized into SDE. It is not a company-specific appraisal or a prediction of sale proceeds.

Is net profit the same as SDE?

Usually not. SDE starts with reported profit, then may add back one owner’s compensation and benefits, interest, taxes, depreciation, amortization, and supportable one-time or non-operating expenses. Unsupported add-backs should not be included.

Why does the business type change the value so much?

Buyers pay different average multiples across industries because transferability, recurring revenue, equipment needs, regulation, customer concentration, growth, and owner dependence vary. The table holds SDE constant so that the reported industry multiple is the only changing input.

Is this the amount the seller takes home?

No. These are market indications before company-specific adjustments. Debt, cash, working capital, fees, taxes, seller financing, earnouts, and deal terms affect seller proceeds.