Available in 1,300+ Industry Reports, IBISWorld's valuation multiples provide industry benchmarks for three of the most commonly used data points.
What are IBISWorld’s valuation multiples?
Our valuation multiples represent an industry average or benchmark for three key data points commonly used to value companies:
EV/Revenue: An enterprise value (EV) multiple, EV/Revenue is a ratio that measures the total value of a company relative to total revenue. A higher multiple suggests the market has stronger expectations for a company’s future growth and profitability, while a lower multiple may indicate potential undervaluation or lower growth expectations. The figure displayed in our reports is the average EV/Revenue ratio among industry participants.
EV/EBIT: An enterprise value (EV) multiple, EV/EBIT is a ratio that measures the total value of a company relative to its earnings before interest and taxes (EBIT). The ratio reflects the value investors are willing to pay per unit of operating profit, independent of a company’s financial decisions (debt levels) or tax environment. The figure displayed in our reports is the average EV/EBIT ratio among industry participants.
EV/EBITDA: An enterprise value (EV) multiple, EV/EBITDA that measures the total value of a company relative to its earnings before interest, taxes, depreciation and amortization (EBITDA). EBITDA is often used as a proxy for a company’s operating cash flow generation ability. A lower multiple may suggest a company is undervalued, while a higher multiple may imply overvaluation or high growth expectations. The figure displayed in our reports is the average EV/EBITDA ratio among industry participants.
For information on all of the industry-level financial ratios we provide, visit our US Financial Ratios FAQs, Australia Financial Ratios FAQs and UK Financial Ratios FAQs articles.
Where can I find valuation multiples in an IBISWorld report?
Valuation multiples can be found in the following table, which is located in the Financial Benchmarks chapter and positioned below the Financial Ratios table:
Which reports include valuation multiples?
Valuation multiples are available in the majority of Australia, UK and US Industry Reports, excluding Specialized Industry Reports and State and Provincial Reports.
The following reports contain valuation multiples:
343 of 500+ Australia ANZSIC Industry Reports
369 of 450+ UK SIC Industry Reports
667 of 680+ US NAICS Industry Reports
How should industry-level multiples be used in valuation work?
Our industry averages serve as benchmarks that help anchor your valuations for businesses within the industry. Armed with third-party calculations, you’ll go into valuations with the necessary context to make well-rounded and unbiased assessments of any business.
Our industry-level valuation data helps you:
Establish a market baseline:
Industry averages indicate what the broader market typically pays for revenue, operating profit or cash flow within a given industry. This helps frame an initial valuation range before layering in company-level detail.
Test reasonableness of assumptions:
Comparing a client’s implied multiples to the industry average helps assess whether valuation conclusions are consistent with industry norms, or whether premiums or discounts require justification.
Support normalization adjustments:
Industry benchmarks provide a clearer picture of standard operations, informing your normalization decisions and helping you navigate company results that may be volatile or temporarily distorted.
Provide defensible, third-party context:
Industry-level multiples strengthen valuation narratives in fairness opinions, investment committee materials and credit memos by grounding conclusions in independent data.
How many years of data do you provide?
The IBISWorld platform displays five years of data, covering the most recent year available plus the four years prior. Additional historical data may be available in the downloadable CSV file.
How often is the data updated?
The Valuation Multiples are updated annually, in line with the source data release schedule for each region. As a general guide, updated data for the US and UK is typically available early in the year, while Australia data is generally released in the second half of the year. For the US and Australia, the data release corresponds to reporting that is approximately two years following the end of the relevant financial year, whereas the UK is typically closer to one year.
Why are some reports missing data?
Our data analysts have intentionally omitted valuation multiples from reports where sufficient data was not available, and accurate estimates could not be made. Valuation multiples depend on variables that are inherently difficult to predict. To preserve analytical credibility, we avoid modeling figures that could introduce bias or reduce confidence in the results.
As a result:
If the necessary inputs are not available for an industry, the valuation multiples table is omitted entirely
If inputs are available for some periods but not others, the missing years are clearly labeled “N/A”
This approach reflects IBISWorld’s commitment to transparent, defensible and audit-ready benchmarks.
Where does IBISWorld source the data used to calculate the valuation multiples?
The data used to calculate our valuation multiples derives from company financial accounts; specifically, items recorded on a company's balance sheet or income statement, where relevant. This data – sourced annually from Companies House for UK data, the Australian Tax Office for Australia data and the IRS and US Census Bureau for US data – is then aggregated to the industry level, by taking an average. As we do not forecast valuation multiples, the timeframe presented corresponds with the most recent data provided by the sources listed.
How are the Valuation Multiples calculated?
IBISWorld's Valuation Multiples are calculated using financial data sourced directly from company and tax office financial reporting in each region covered. Actual market transactions from the sale of businesses are not used as an input.
The numerator of each Valuation Multiple is Enterprise Value (EV), which is formally defined as:
Enterprise Value = Market Value of Equity + Total Debt + Preferred Equity + Minority Interest − Cash & Cash Equivalents
IBISWorld's calculations are designed to approximate this definition as closely as possible. However, because Market Value of Equity is not widely available across industries and company sizes, Book Value of Equity is used as a proxy in its place.
While Book Value of Equity is not a like-for-like substitute for Market Value of Equity, this approach ensures that companies of all sizes are represented in the industry average. Using Market Value of Equity (typically Market Capitalization) instead would skew results toward large, publicly listed companies. It is important to note this substitution, as it may affect how the Valuation Multiples are interpreted.
What size companies are considered in the industry averages?
Companies of all sizes are represented in our valuation multiples. IBISWorld calculates an average based on available source data, which reflects businesses across a range of sizes within each industry.
For the US, the data can also be segmented by asset size, enabling more targeted analysis. Available asset bands include: <500k, 500k–1m, 1m–5m, 5m–10m, 10m–25m, 25m–50m, 50m–100m, 100m–250m, 250m–500m, and >500m.
Can Valuation Multiples be negative?
While uncommon, negative values can appear in the Valuation Multiples dataset. This typically occurs in one of two scenarios: when an industry reports an aggregate loss for a given financial year, or when the combined Book Value of Equity across the industry is negative. The latter may arise where businesses within the industry carry significant debt obligations or have experienced a material decline in asset values. Where negative values are present, they reflect real underlying financial conditions and should be considered when interpreting the data.
Can I use your valuation multiples outside of a business valuation setting?
Yes. Our valuation multiples provide practical industry context that supports credit analysis, risk assessment and decision-making across a range of finance-related workflows.
Here’s how they are commonly applied outside of traditional valuation work:
Supporting credit analysis: Industry valuation benchmarks help lenders and credit teams understand how the market typically values revenue, earnings or cash flow within a borrower’s industry. This context allows analysts to assess whether a borrower’s implied enterprise value is broadly aligned with industry norms, supporting more informed credit judgments.
Assessing leverage and downside risk: By pairing industry-average EV/EBITDA or EV/EBIT benchmarks with a borrower’s debt levels, lenders can evaluate how much valuation headroom exists under typical industry conditions. This can help you determine maximum loan amounts and adjust loan terms to reduce risk exposure.
Contextualizing borrower valuations: Lenders and underwriters can use industry-level multiples as a neutral reference point to evaluate borrower-provided valuations. If a borrower’s implied valuation meaningfully exceeds the industry average, for example, underwriters may require stronger justification to make the best possible lending recommendation.
Informing stress testing and downside scenarios: Industry valuation multiples provide a practical baseline for modeling downside cases. With several years of data available, analysts can test how changes in industry dynamics or operating performance may affect enterprise value, leverage ratios and other key indicators of solvency.
How can I integrate your valuation multiples into my firm’s proprietary models?
Our API solution now includes Valuation Multiples. This can be accessed in line with existing API data structures, allowing you to bring the multiples into your proprietary models seamlessly using specific API calls. If you'd like more information about using our API, please reach out to your Client Relationship Manager.
Can Phil answer questions about your valuation multiples?
Upon launching our valuation multiples in January 2026, Phil will not be able to incorporate the new data into his AI-powered answers. This functionality will be delivered later in the year.