Valuation multiples by sector in Spain: indicative estimate 2026

If you are thinking of selling your business — or buying one — the first thing you need is an indicative reference for how much a business like yours might be worth. That reference is valuation multiples: ratios that relate a company's operating profit to its sale price.

In this article we publish the complete tables of SDE and EBITDA multiples by sector: an indicative estimate based on Alcara Partners' valuation model. They are the same data that feed our free valuation tool.

What are valuation multiples and how are they used?

A valuation multiple is a ratio by which a company's operating profit is multiplied to estimate its market value. The two most used in SME sales and acquisitions are SDE and EBITDA.

The formula is simple:

Business value = Profit metric × Sector multiple

For example, if your business has EBITDA of €200,000 and the average multiple for your sector is 4.5×, the indicative value would be €900,000. The actual multiple within the range depends on qualitative factors such as dependence on the owner, the revenue trend and the quality of the contracts.

When is SDE used and when is EBITDA used?

SDE (seller's discretionary earnings) is used for small businesses where the owner is a key part of the business, typically with turnover below €1-2 million.

SDE = Net profit + Owner's salary + Personal expenses charged to the business

EBITDA (earnings before interest, taxes, depreciation and amortisation) is used for medium-sized and large businesses where management does not depend on a single person.

As a general rule:

• Turnover < €1M → use SDE
• Turnover €1M – €3M → SDE or EBITDA (whichever is higher)
• Turnover > €3M → use EBITDA

Table of SDE multiples by sector (small businesses)

Sector	Low	Mid	High	Notes
Technical services (HVAC, electrical, plumbing, solar)	2×	2.8×	3.5×	Recurring maintenance contracts push towards the top of the range
Professional cleaning	1.5×	2.2×	3×	Businesses with fixed contracts at the top of the range
Maintenance (industrial, buildings)	1.5×	2.3×	3×	Recurring contracts as a key differentiator
Security and alarms	2×	2.8×	3.5×	Monthly monitoring = premium for recurring revenue
General manufacturing	2×	2.8×	3.5×	Equipment value adds to the valuation floor
Ceramics and specialised manufacturing	2.5×	3×	4×	Castellón cluster premium, export markets
Construction and refurbishment	1.5×	2×	2.8×	Project-based, cyclical sector — lower multiples
Architecture and engineering	2×	2.5×	3.5×	Client relationships and portfolio
Distribution and wholesale	2×	2.5×	3.2×	Exclusive distribution rights push upwards
Transport and logistics	1.8×	2.5×	3.2×	Fleet condition and licences matter a lot
Professional services (gestoría, consultancy)	2×	2.8×	3.5×	Recurring client portfolio = premium
IT services / software	2.5×	3.5×	4.5×	SaaS / recurring revenue at the top
Marketing agency	2×	2.5×	3.5×	Clients on a monthly recurring contract vs. one-off projects
Restaurant	1×	1.8×	2.5×	Location-dependent, high failure rate
Bar / café	0.8×	1.5×	2.2×	The licence and the location are the value
Hotel / hostel	1.5×	2.5×	3.5×	Property included vs. leased changes everything
Catering	1.5×	2×	2.8×	Contract catering higher
General retail	1.5×	2×	2.5×	Inventory not included in the multiple
Supermarket / food retail	2×	2.5×	3×	Stable, recurring demand
Pharmacy	3×	3.5×	4.5×	Regulated, high barrier to entry
Dental clinic	2.5×	3.2×	4.5×	Equipment + patient base
Veterinary clinic	2.5×	3×	4×	Growing sector, loyal client base
Physiotherapy / wellness	1.5×	2.5×	3.5×	Dependent on the practitioner = lower
Care home	3×	4×	5×	Demographic demand, high barriers
Automotive / garage	1.5×	2×	2.8×	Equipment condition matters
Education / training	1.5×	2.2×	3×	Enrolment stability
Agriculture / food	1.5×	2.2×	3×	Land/assets separate

Table of EBITDA multiples by sector (medium-sized businesses)

Sector	Low	Mid	High	Notes
Technical services (HVAC, electrical, plumbing, solar)	3.5×	4.5×	6×	Recurring revenue + essential services
Cleaning / facility management	3×	4×	5.5×	Contract stickiness matters
Security / alarms / monitoring	4×	5.5×	7×	Monthly monitoring = recurring premium
General manufacturing	3.5×	5×	6.5×	Equipment, IP, export markets
Ceramics and specialised manufacturing	4×	5.5×	7×	Castellón cluster, brand value
Construction	3×	4×	5.5×	Backlog quality is a key factor
Architecture / engineering	3.5×	4.5×	6×	Client relationships, team retention
Distribution / wholesale	3.5×	4.5×	6×	Exclusive agreements at the top of the range
Transport / logistics	3×	4×	5.5×	Fleet age, licences, routes
Professional services	3.5×	5×	6.5×	Partner-dependent vs. firm-dependent
IT / software / SaaS	5×	7×	10×	Recurring revenue, growth rate
Marketing / advertising agency	3×	4.5×	6×	Recurring revenue (monthly recurring contracts) drives the premium
Hospitality (restaurant, hotel)	3×	4×	5×	Location, brand, property
Retail	3×	4×	5×	Omnichannel premium
Pharmacy	5×	6.5×	8×	Regulatory barrier
Healthcare (dental, veterinary, medical)	5×	6×	8×	Demographics + barriers
Care home	6×	7.5×	9×	High demand, regulated
Agriculture / food	3×	4×	5.5×	Land/brand/export
Education	3×	4×	5.5×	Enrolment stability

How does company size affect the multiple?

Larger companies achieve higher multiples because they attract more buyers (private equity funds, strategic buyers). This is the size adjustment applied to the base EBITDA multiples:

This means that a manufacturing company with EBITDA of €500,000 and turnover of €5-10M would have adjusted multiples of 4.5×-7.5× (base 3.5×-6.5× plus +1.0), compared with 3.0×-6.0× if its turnover were €500K-€1.5M.

Which factors move the multiple within the range?

The range between the low and high multiple of each sector is wide — often double. These qualitative factors determine where your business falls within that range:

• Dependence on the owner: A business that works without its owner is worth significantly more than one that stops when they are not there. It is one of the most important factors [1].
• Recurring revenue: Maintenance contracts, subscriptions or annual agreements push towards the top of the range.
• Revenue trend: Growing >5% a year = top of the range. Falling = bottom of the range.
• Documented processes: Whether a new owner can understand how the business works without depending on the current people.
• Location: In the Valencian Community (Comunidad Valenciana), Valencia and Alicante have a larger pool of buyers.
• Customer concentration: If a single customer accounts for a large share of revenue, that lowers the multiple.

Three illustrative valuation examples

Illustrative example 1: HVAC company in Valencia

• Turnover: €800,000 (< €1M → use SDE)
• Net profit: €60,000 + Owner's salary: €36,000 + Personal expenses: €8,000
• SDE = €104,000
• Sector: Technical services → SDE multiples: 2.0× – 3.5×
• Positive factors: recurring maintenance contracts, stable team
• Value range: €208,000 – €364,000

Illustrative example 2: Gestoría (administrative and tax services firm) with a recurring client portfolio

• Turnover: €1.5M (→ use EBITDA)
• EBITDA: €250,000
• Sector: Professional services → EBITDA multiples: 3.5× – 6.5× (no size adjustment for €1.5M-€3M)
• Positive factors: 95% client retention, digitalised processes
• Value range: €875,000 – €1,625,000

Illustrative example 3: Industrial manufacturer in Castellón

• Turnover: €7M (→ use EBITDA with +1.0 adjustment)
• EBITDA: €700,000
• Sector: General manufacturing → base EBITDA multiples: 3.5× – 6.5× → adjusted: 4.5× – 7.5×
• Negative factors: high dependence on the owner, undocumented processes
• Value range: €3,150,000 – €5,250,000 (but the qualitative factors push towards the bottom of the range)

Want to know where your business falls within these ranges? Our free valuation tool uses exactly these multiples, adjusted to your sector and your specific qualitative factors.

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These multiples are a starting point, not an end point. Every business is unique, and a professional valuation takes into account factors that no table can capture: the quality of the assets, the contracts in force, the team and the competitive position.

If you are thinking of selling or buying, the first step is to have a clear reference.

Estimate the value of your business for free →

Frequently asked questions

How much is a business with a turnover of €1 million worth?

It depends on the sector and the operating profit, not on turnover. A technical services company with turnover of €1M and EBITDA of €150,000 could be valued at between €450,000 and €825,000 (EBITDA multiples 3.0×-5.5× with size adjustment). But a company in the same sector with the same EBITDA but more recurring revenue could get closer to the top of the range. For more details, see our article on the value of businesses with a turnover of €1 million.

How much is a business with a turnover of €2 million worth?

Following the same principle, what matters is EBITDA. With turnover of €2M and EBITDA of, for example, between €150,000 and €400,000, applying the sector's EBITDA multiples (no size adjustment for the €1.5M-€3M bracket), the value could range between €450,000 and €2,600,000 in most sectors, depending on the sector and profitability, and exceed that range in the sectors with the highest multiples (such as IT / software, healthcare or care homes).

Why are IT and software multiples so high?

Because software businesses — especially SaaS — have highly recurring revenue, high margins, scalability without proportional cost and low dependence on physical assets. A buyer pays more because the risk of losing revenue is lower and the growth potential is greater.

Do the multiples include the value of the assets?

In general, no. SDE and EBITDA multiples value the business as a generator of profit, not the physical assets. In sectors such as manufacturing or transport, where assets are significant, there may be a valuation floor based on the value of the tangible assets (machinery, vehicles, property).

Are these multiples specific to Spain?

The multiples in these tables are an indicative estimate based on Alcara Partners' valuation model, designed for SMEs in the Spanish market. They are not data from specific transactions: the value of each deal depends on the sector, the size and the qualitative factors of the business.

Can I use these multiples to value my business myself?

You can use them as an indicative reference, but bear in mind that the real valuation of a business depends on many qualitative factors that a table cannot capture. For a more accurate estimate, use our free valuation tool, which incorporates qualitative factors as well as the multiples.

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References

[1] John Warrillow. Built to Sell: Creating a Business That Can Thrive Without You. Portfolio/Penguin, 2011.