Valuation Multiples by Industry (2026) — What Is Your BC Business Worth?

If you are thinking about selling your business, bringing on a partner, or raising capital, one question matters most: What is my company worth?

The answer almost always involves a multiple — either of revenue or EBITDA (earnings before interest, taxes, depreciation, and amortization). A tech startup might sell for 3x–6x EBITDA. A construction company might sell for 2.5x–4.5x EBITDA. A retail store might sell for 1.5x–3.5x EBITDA.

But multiples vary wildly by industry, size, growth rate, and risk profile. This guide explains how valuation multiples work and provides typical ranges for BC’s major industries.

For a detailed breakdown with specific numbers for your industry, see our valuation multiples by BC industry guide. For a formal valuation, see our business valuation services page.

What Is a Valuation Multiple?

A valuation multiple is a simple way to estimate a business’s value. You take a financial metric (like EBITDA or revenue) and multiply it by a number.

Example: If your business has $1,000,000 in EBITDA and the industry multiple is 4x, your estimated value is $4,000,000.

Why multiples exist: Buyers use multiples to compare businesses across industries. They are quick, standardised, and widely understood. But they are also a starting point — not a final answer.

What Drives a Multiple Up or Down?

Not all businesses in the same industry get the same multiple. Here is what makes a difference:

Real example — Two BC construction companies:

Same EBITDA. Different valuation. The difference is $2M.

Valuation Multiples by BC Industry (2026)

The table below shows typical valuation multiples for privately held BC businesses with $500k–$15M in revenue.

How to read this table: If your construction company has $1M EBITDA and the median multiple is 3.5x, your estimated value is $3.5M. If you are in tech with $500k EBITDA and a 4.5x multiple, your estimated value is $2.25M.

Important: These are ranges, not guarantees. Your specific business could be worth more or less depending on the factors listed above.

See where your business falls? A formal valuation gives you the exact number. book a free consultation

How to Calculate Your Estimated Valuation

Step 1: Determine your financial metric

• If your business has consistent earnings: Use EBITDA

• If you are early-stage or owner-dependent: Use SDE (seller’s discretionary earnings)

• If you are a professional services firm: Use revenue (multiples are lower)

Step 2: Find your industry multiple from the table

• Start with the median multiple

• Adjust up or down based on the factors above

Step 3: Calculate estimated value

• Estimated Value = Financial Metric × Multiple

Example — BC tech startup:

• EBITDA: $500,000

• Median multiple for tech/SaaS: 4.5x

• Estimated value: $2.25M

• Adjust up for 90% recurring revenue (+0.5x) → 5.0x → $2.5M

• Adjust down for customer concentration (-0.5x) → 4.0x → $2.0M

Range: $2.0M – $2.5M

How to Improve Your Valuation Multiple

If your estimated multiple is on the low end, you can take specific actions to increase it — ideally 12–24 months before selling.

For strategic financial leadership to drive these improvements, see our fractional CFO services.

When You Need a Formal Valuation

The multiple approach above gives you a rough estimate. But for any actual transaction — sale, investment, merger, partner buy-in — you need a formal valuation.

A formal valuation includes:

• Three approaches to value (market, income, asset)

• Normalization adjustments (removing one-time expenses)

• Risk assessment (industry, customer, operational)

• Valuation conclusion with specific number

• CRA-ready, court-defensible report

For formal valuation services, see our business valuation services page.

Your Next Step

Understanding your business’s valuation multiple is the first step. Whether you are planning to sell, bring on a partner, or simply want to know where you stand, the numbers above give you a starting point.

Here is how to start:

1. Find your industry in the table above

2. Calculate your estimated value

3. Book a free consultation for a formal valuation

Book your free consultation

Rajeev Kumar, Director at ARV Consultants. CPA, 18 years experience. Named one of the world’s Top 10 CFOs by CEO Insights Magazine (2024, 2023, 2022).