Revenue left after the direct cost of what is sold
EBITDA margin
22.3%
15.7%
Profit before interest, tax, depreciation and amortization
Operating margin
18.6%
12.1%
Profit from operations, before interest and tax
Net margin
11.7%
7.3%
Profit after every cost and tax
EV/EBITDA
13.2×
13.2×
Enterprise value ÷ EBITDA, profitable companies
EV/Sales
3.1×
2.6×
Enterprise value ÷ revenue
Cost of capital
7.03%
7.08%
Return investors require, debt and equity blended
SG&A ÷ revenue
32.0%
—
Selling, general and administrative costs
Debt ÷ capital
15.4%
—
Share of funding from debt, at market values
Beta (levered / total unlevered)
0.82 / 5.15
—
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 household products industry?
Across 110 U.S. public companies in the household products industry, net profit is 11.7% of revenue, operating profit 18.6% and gross profit 51.0% (January 2026 data from NYU Stern). That gross margin ranks 28 of 94 industries.
What is a good EBITDA margin in the household products industry?
The industry average is 22.3%, against 15.7% for the typical industry. A business above 22.3% keeps more of each sale than the listed companies in its field.
What multiple do businesses in the household products industry sell for?
Listed companies in the household products industry trade at 13.2× EBITDA and 3.1× 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 household products industry?
A diversified investor would want about 7.0% 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 5.15 × 4.46% = 26.9%.