Information services profit margins and multiples

15 U.S. public companies · January 2026

Gross margin34.1%#56 of 94 · typical 36.9%
EBITDA margin17.3%#44 of 94 · typical 15.7%
Operating margin11.9%#49 of 94 · typical 12.1%
Net margin6.5%#51 of 94 · typical 7.3%
EV/EBITDA11.5×#54 of 91 · typical 13.2×
EV/Sales2.2×#52 of 94 · typical 2.6×
Cost of capital7.00%#50 of 94 · typical 7.08%

Value a business in the information 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

MeasureInformation ServicesTypical industryWhat it means
Gross margin34.1%36.9%Revenue left after the direct cost of what is sold
EBITDA margin17.3%15.7%Profit before interest, tax, depreciation and amortization
Operating margin11.9%12.1%Profit from operations, before interest and tax
Net margin6.5%7.3%Profit after every cost and tax
EV/EBITDA11.5×13.2×Enterprise value ÷ EBITDA, profitable companies
EV/Sales2.2×2.6×Enterprise value ÷ revenue
Cost of capital7.00%7.08%Return investors require, debt and equity blended
SG&A ÷ revenue17.7%—Selling, general and administrative costs
Debt ÷ capital24.9%—Share of funding from debt, at market values
Beta (levered / total unlevered)0.92 / 2.88—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 information services industry?

Across 15 U.S. public companies in the information services industry, net profit is 6.5% of revenue, operating profit 11.9% and gross profit 34.1% (January 2026 data from NYU Stern). That gross margin ranks 56 of 94 industries.

What is a good EBITDA margin in the information services industry?

The industry average is 17.3%, against 15.7% for the typical industry. A business above 17.3% keeps more of each sale than the listed companies in its field.

What multiple do businesses in the information services industry sell for?

Listed companies in the information services industry trade at 11.5× EBITDA and 2.2× 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 information services 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 2.88 × 4.46% = 16.8%.