Consumer electronics profit margins and multiples

8 U.S. public companies · NYU Stern “Electronics (Consumer & Office)” · January 2026

Gross margin38.8%#44 of 94 · typical 36.9%
EBITDA margin-2.6%#94 of 94 · typical 15.7%
Operating margin-4.5%#94 of 94 · typical 12.1%
Net margin-9.4%#92 of 94 · typical 7.3%
EV/EBITDA30.7×#5 of 91 · typical 13.2×
EV/Sales0.9×#85 of 94 · typical 2.6×
Cost of capital7.63%#28 of 94 · typical 7.08%

Value a business in the consumer electronics 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

MeasureConsumer ElectronicsTypical industryWhat it means
Gross margin38.8%36.9%Revenue left after the direct cost of what is sold
EBITDA margin-2.6%15.7%Profit before interest, tax, depreciation and amortization
Operating margin-4.5%12.1%Profit from operations, before interest and tax
Net margin-9.4%7.3%Profit after every cost and tax
EV/EBITDA30.7×13.2×Enterprise value ÷ EBITDA, profitable companies
EV/Sales0.9×2.6×Enterprise value ÷ revenue
Cost of capital7.63%7.08%Return investors require, debt and equity blended
SG&A ÷ revenue26.5%—Selling, general and administrative costs
Debt ÷ capital5.5%—Share of funding from debt, at market values
Beta (levered / total unlevered)0.87 / 4.88—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 consumer electronics industry?

Across 8 U.S. public companies in the consumer electronics industry, net profit is -9.4% of revenue, operating profit -4.5% and gross profit 38.8% (January 2026 data from NYU Stern). That gross margin ranks 44 of 94 industries.

What is a good EBITDA margin in the consumer electronics industry?

The industry average is -2.6%, against 15.7% for the typical industry. A business above -2.6% keeps more of each sale than the listed companies in its field.

What multiple do businesses in the consumer electronics industry sell for?

Listed companies in the consumer electronics industry trade at 30.7× EBITDA and 0.9× 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 consumer electronics industry?

A diversified investor would want about 7.6% 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 4.88 × 4.46% = 25.7%.