What Are Exit Multiples?
Exit multiples are a key metric used in company valuations - especially when calculating potential outcomes in a Value Creation Plan (VCP). These multiples, often expressed as EBITDA multiples, estimate a company’s value based on its earnings and can vary significantly by industry, company size, growth rate, and market conditions.
📌 Why It Matters
When setting financial targets in Entromy’s VCP setup, you’ll be asked to enter a target EBITDA multiple. If you don’t have a specific exit multiple in mind, using an industry average is a reliable starting point.
🏷️ Exit Multiples by Industry (U.S.)
The table below shows typical EBITDA multiple ranges by industry in the U.S. These are practical references but should be used alongside client-specific context.
Industry | EBITDA Multiple Range |
Advertising | 15x – 20x |
Aerospace & Defense | 14x – 18x |
Agricultural Products & Services | 8x – 12x |
Air Freight & Logistics | 7x – 10x |
Apparel Retail | 12x – 16x |
Application Software | 30x – 40x |
Asset Mgmt & Custody Banks | 14x – 18x |
Biotechnology | 15x – 20x |
Broadcasting | 5x – 7x |
Cable & Satellite | 6x – 8x |
Casinos & Gaming | 9x – 12x |
Commercial Printing | 8x – 11x |
Consumer Finance | 6x – 8x |
Construction & Engineering | 12x – 16x |
Data Center REITs | 25x – 30x |
Distillers & Vintners | 10x – 13x |
Electric Utilities | <2x |
Financial Exchanges & Data | 16x – 22x |
Health Care Services | 20x – 25x |
Health Care Technology | 30x – 35x |
Hotels, Resorts & Cruise Lines | 10x – 14x |
IT Consulting & Services | 17x – 20x |
Interactive Media & Services | 15x – 20x |
Internet Services & Infrastructure | 45x – 55x |
Life Sciences Tools & Services | 20x – 25x |
Managed Health Care | 14x – 18x |
Oil & Gas | 5x – 10x |
Real Estate Services | 8x – 15x |
Restaurants | 15x – 18x |
Manufacturing | 14x – 20x |
📈 Notes & Best Practices
High-growth industries (e.g. software, healthcare tech, internet) typically show higher multiples due to scalability and innovation potential.
Stable industries (e.g. utilities, broadcasting) often have lower multiples due to slower, more predictable growth.
Actual multiples may vary based on company performance, market sentiment, and economic conditions.
Data sourced from Yahoo Finance, Bloomberg, and EQ Vista.