Business & consumer services profit margins and multiples

155 U.S. public companies · January 2026

Gross margin33.4%#57 of 94 · typical 36.9%
EBITDA margin15.7%#48 of 94 · typical 15.7%
Operating margin12.3%#46 of 94 · typical 12.1%
Net margin7.0%#49 of 94 · typical 7.3%
EV/EBITDA14.3×#37 of 91 · typical 13.2×
EV/Sales2.5×#49 of 94 · typical 2.6×
Cost of capital7.23%#43 of 94 · typical 7.08%

Value a business in the business & consumer services industry

Buyer, discount, growth and tax
Pick the industry, then enter revenue and EBITDA.

Industry data: Damodaran, NYU Stern, January 2026 · sale multiple: BizBuySell, Q2 2026. An estimate, not an appraisal.

The numbers

MeasureBusiness & Consumer ServicesTypical industryWhat it means
Gross margin33.4%36.9%Revenue left after the direct cost of what is sold
EBITDA margin15.7%15.7%Profit before interest, tax, depreciation and amortization
Operating margin12.3%12.1%Profit from operations, before interest and tax
Net margin7.0%7.3%Profit after every cost and tax
EV/EBITDA14.3×13.2×Enterprise value ÷ EBITDA, profitable companies
EV/Sales2.5×2.6×Enterprise value ÷ revenue
Cost of capital7.23%7.08%Return investors require, debt and equity blended
SG&A ÷ revenue17.9%—Selling, general and administrative costs
Debt ÷ capital16.5%—Share of funding from debt, at market values
Beta (levered / total unlevered)0.89 / 3.23—Market risk / all the risk an undiversified owner carries

Source: Aswath Damodaran, NYU Stern, January 2026. Aggregates: total profit ÷ total revenue across the group, so large companies weigh more.

Frequently asked questions

What is the average profit margin in the business & consumer services industry?

Across 155 U.S. public companies in the business & consumer services industry, net profit is 7.0% of revenue, operating profit 12.3% and gross profit 33.4% (January 2026 data from NYU Stern). That gross margin ranks 57 of 94 industries.

What is a good EBITDA margin in the business & consumer services industry?

The industry average is 15.7%, against 15.7% for the typical industry. A business above 15.7% keeps more of each sale than the listed companies in its field.

What multiple do businesses in the business & consumer services industry sell for?

Listed companies in the business & consumer services industry trade at 14.3× EBITDA and 2.5× revenue. Small private businesses sell for far less: U.S. small businesses averaged 2.7× seller’s discretionary earnings in Q2 2026 (BizBuySell).

What discount rate should I use for a business in the business & consumer services industry?

A diversified investor would want about 7.2% on the whole business (the industry cost of capital). An owner with most of their wealth in it carries more risk: 3.95% + total beta 3.23 × 4.46% = 18.4%.