Consumer Business Valuation
29 valuation methods · 43 industries · Results in under 10 minutes
In short
Consumer businesses are valued on their earnings. A smaller restaurant, store or consumer products company is valued mainly on seller's discretionary earnings, and larger ones and e-commerce brands on a discounted cash flow, comparable companies and precedent transactions. Buyers pay more for repeat customers, brands that sell through more than one channel, and locations that do not depend on the owner being there.
How businesses in this sector are valued
Smaller restaurants, retail stores and consumer products companies are valued mainly on seller's discretionary earnings, EBITDA plus the owner's pay, times a multiple drawn from small-business transaction data, alongside a discounted cash flow, comparable companies and precedent transactions. Larger ones, and e-commerce brands of any size, are valued on a discounted cash flow, comparable companies and precedent transactions. A smaller personal services business, such as a gym, salon, pet care or entertainment business, leans most on precedent transactions, what comparable private businesses have sold for, alongside a discounted cash flow and comparable companies. Earnings are taken after the add-backs you confirm, such as resetting the owner's pay to a manager's salary or removing personal costs run through the business.
Guides in this sector
Restaurants & Hospitality
Value a restaurant group, hotel, catering company or event venue on its earnings, with results by location, leases and the owner's role read as buyers do.
Restaurants
Value a restaurant, café, bar or food truck on seller's discretionary earnings and cash flow, with the lease, the owner's role and costs read as buyers do.
Physical Retail
Value a retail store or small chain on seller's discretionary earnings and cash flow, with the lease, inventory and margins read the way buyers read them.
E-Commerce DTC
Value an online store, Amazon seller or direct-to-consumer brand on its earnings, with repeat customers, ad costs, channels and stock read as buyers do.
Consumer Brands
Value a consumer brand or packaged goods company on its earnings, with distribution, gross margin, trade spending and top retailers read as buyers do.
Consumer Services
Value a salon, spa, laundry, funeral home or other personal services business on its earnings, with the owner's role, clients and lease read as buyers do.
Fitness & Wellness
Value a gym, fitness studio, climbing gym or day spa on its earnings, with members, retention, the lease and trainers who stay read as buyers do.
Leisure & Entertainment
Value an entertainment center, bowling center, escape room or golf course on its earnings, with repeat visits, events and the lease read as buyers do.
Pet Services
Value a pet grooming, boarding, daycare or training business on its earnings, with repeat clients, capacity, the site and staff read as buyers do.
Value your business in under 10 minutes
- 1.Upload your financial statements, or type the figures in.
- 2.Confirm the add-backs and the industry details the model asks for.
- 3.Get a valuation range, the methods behind it and a PDF memorandum.
Further reading
How to Value an E-Commerce Business: SDE Multiples, Revenue Quality, and Platform Risk
E-commerce valuation explained: the SDE and EBITDA multiples online businesses sell for by model (FBA, DTC, dropship), why revenue quality and platform dependence move the price, and a worked example.
How to Value a Restaurant: SDE Multiples, Prime Cost, and What Buyers Actually Pay
How restaurant valuation works in 2026: the SDE multiples buyers pay by restaurant type, why prime cost and your lease move the number, and a worked example.
Is a Business Worth 3 Times Profit? When It Is 2x, When It Is 5x, and Which Profit Counts
Is a business worth 3 times profit? Often, if the profit is SDE. When 2x or 5x applies instead, which profit counts, and what diligence does to the price.
Frequently asked questions
How is a restaurant valued?
A smaller restaurant is valued mainly on seller's discretionary earnings, EBITDA plus the owner's pay, times a multiple drawn from small-business transaction data, alongside a discounted cash flow, comparable companies and precedent transactions; a larger one on those three alone. Lease terms, the owner's role in the kitchen or on the floor, and whether sales hold up across locations all move what buyers pay.
How is an e-commerce brand valued?
On its earnings and growth, against comparable companies and precedent transactions. Repeat purchase rates, dependence on one marketplace or advertising channel, and inventory all affect the value.
How is a gym, salon or pet care business valued?
On its earnings: a discounted cash flow, comparable companies and precedent transactions, after the add-backs you confirm, such as resetting the owner's pay to a manager's salary. For a smaller business, precedent transactions carry the most weight.
What do buyers pay more for in a consumer business?
Customers who come back, sales that do not depend on the owner, more than one channel or location, and a brand that can grow without heavy advertising.
As featured in
Value your business
Get a valuation range with the methods behind it and a PDF memorandum in under 10 minutes.
Other sectors
Trade Services
How HVAC, plumbing, electrical, roofing, pest control, landscaping and auto repair businesses are valued, and what raises or lowers the value.
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How medical practices, clinic groups, home health agencies, labs, device makers and biotech companies are valued, and why payer mix moves the multiple.
Business Services
How professional services firms, staffing agencies and training companies are valued, and what makes their earnings worth more to a buyer.
Technology
How SaaS, usage-based AI, on-premise software, managed IT services, marketplaces and media businesses are valued, each on the model its revenue calls for.
Financial Services
How insurance agencies, wealth managers, payment processors, lenders, banks and private equity portfolios are valued, each on its own model.
Industrials & Manufacturing
How manufacturers, machine shops and industrial distributors are valued on earnings and cash flow, with the value of their assets as a floor.
Building & Construction
How contractors, engineering firms, building products makers, quarries and equipment rental companies are valued, and what moves the value.
Transportation
How trucking, air charter, marine, rail, cold chain and warehousing companies, freight brokers and distributors are valued, and what moves the value.
Energy & Infrastructure
How solar, wind and storage projects, regulated utilities, data centers, mines and environmental services companies are valued, each on its own model.
Real Estate & Hospitality
How apartment buildings and self-storage facilities are valued on net operating income and cap rates, and where hotel and property managers fit.
Food & Agribusiness
How farms and agricultural businesses are valued: land at market, biological assets and the operating business, without counting the same acres twice.
Aerospace & Defense
How aerospace and defense manufacturers, space hardware makers and government services contractors are valued, and what moves the value.
Last reviewed September 26, 2026 against VA's valuation models.