Landscaping Company Valuation
29 valuation methods · 43 industries · Results in under 10 minutes
In short
A landscaping company is usually valued on seller's discretionary earnings: EBITDA plus the owner's pay. VA values maintenance contracts as their own layer, at a higher multiple than install work, and lowers the multiple on installs for home builders.
Who this is for
Owners of landscaping, lawn care and grounds maintenance companies serving commercial properties, homeowners' associations or households, preparing to sell or bring in a partner, and buyers who need the maintenance book separated from project work.
How is a landscaping company valued?
VA values an owner-run landscaping company on seller's discretionary earnings: EBITDA plus the owner's pay, because a buyer replaces the owner. Maintenance contracts are valued as their own layer, at a higher multiple than one-off work, and that multiple rises with the share of customers who renew. Install, enhancement and design-build work is valued at a lower multiple that rises with the company's size and falls as work for new construction takes a larger share. Comparable companies, precedent transactions and a discounted cash flow check the result, and an asset floor keeps it above what the company's own assets would recover. This tool is informational only. Output is driven by your inputs and does not constitute a formal appraisal or certified valuation.
What drives the value of a landscaping company?
- Maintenance contracts with commercial properties and associations, and how often they renew
- The split between recurring maintenance and one-off installs, enhancements and design-build projects
- Seasonality, and whether snow removal or year-round work keeps crews busy in the off season
- Route density across the service area
- Crew retention and supervisors who can run jobs without the owner
- The age and condition of trucks, trailers and mowers, which a buyer will have to replace
What lowers the value of a landscaping company?
- Install work for home builders, which follows the building cycle
- Maintenance customers who do not renew
- Seasonal crews that have to be rehired each spring
- An aging equipment fleet a buyer will have to replace
How much is a landscaping company worth? A worked example
Maintenance contracts and builder installs
A landscaping company with $3.5 M of revenue, $400 K of EBITDA and $130 K of owner pay has $530 K of seller's discretionary earnings. Maintenance contracts bring in 40% of revenue, 85% of those customers renew, and 25% of revenue is install work for home builders. The trades model values the contract share of earnings at 4.7× and the rest at 2.75×, about $1.87 M before debt. With the same install work done for homeowners instead of builders, the rest is valued at 3× and the total comes to about $1.95 M.
Illustrative figures from the industry model alone. A full report blends it with a discounted cash flow, comparable companies and precedent transactions.
Value your landscaping company 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.
Which numbers matter most?
Seller's discretionary earnings
EBITDA plus the owner's own pay and perks. VA uses the pay you enter; for a small owner-run company with no figure entered, it estimates a working owner's salary.
Recurring contract revenue
Revenue from maintenance contracts that renew. VA values it as its own layer, separate from project work.
Customer retention
The share of contract customers who renew each year. The multiple on the recurring layer rises with it.
New-construction share
The part of revenue from work on new buildings. It follows the building cycle, so VA lowers the multiple on job work as it grows.
Equipment condition
Trucks, trailers and mowers near the end of their life are spending a buyer will price in.
What do you need to value a landscaping company?
- Profit and loss statements and balance sheets, ideally for the last three years
- Figures for the current year to date
- A list of add-backs: the owner's pay and perks, and any one-off costs
- Loan and lease balances
- A list of maintenance contracts, with renewal dates
- Revenue split between maintenance, installs for homeowners and installs for builders
- The equipment list with the age of each machine
Example scenarios
A maintenance book against a project business
Two landscaping companies earn the same. One earns most of it from commercial maintenance contracts that renew each spring; the other from installs sold one at a time. VA values the first higher, because its contract revenue is priced as a recurring layer.
Winter work
A company that plows snow for its maintenance clients keeps crews and equipment earning through the winter, and its earnings are steadier across the year. If the snow contracts renew with the maintenance agreements, enter them with your recurring contract revenue and VA values them in the recurring layer.
Further reading
How to Value an HVAC Business in 2026: SDE and EBITDA Multiples
HVAC businesses sell for about 2x to 3.3x SDE for small shops and 5x to 9x EBITDA for larger firms. See 2026 multiples by size and what drives the number.
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.
How Much Is a Business Worth With $500,000 in Sales? The Revenue Ladder From $100K to $3 Million
Revenue does not set a price, earnings do. See what businesses at $100K, $200K, $300K, $500K, $1M, $2M and $3M in sales are worth at 10%, 20% and 30% margins.
Frequently asked questions
Is my company valued on SDE or on EBITDA?
The leading method uses seller's discretionary earnings, EBITDA plus the owner's pay, because most buyers of owner-run service companies replace the owner. Comparable companies and precedent transactions, which work on EBITDA, sit alongside it as checks.
How do association and commercial contracts affect value?
Contracts that renew are valued as a separate layer at a higher multiple than project work, and the multiple rises with your renewal rate. A book of multi-year commercial and association contracts is the part of the business a buyer pays most for.
What about my equipment?
VA values the business on its earnings. The equipment matters twice: a buyer prices in replacements that are due soon, and the asset floor uses what your assets would recover, which stops the result falling below that level.
Is this a certified appraisal?
No. This is an informational estimate. A bank loan, a partner buyout or an estate matter may require a certified business appraisal, which this does not replace.
Is snow removal revenue valued like maintenance?
It counts as recurring only if customers sign seasonal contracts they renew each year; enter that revenue with your maintenance contracts. One-off storm calls count as one-off work.
Does seasonality lower the value?
The model values a full year of earnings, so seasonality matters through the margins and through how much of the year crews stay busy. Contracts that carry work into the off-season help.
Terms used on this page
- Seller's discretionary earnings (SDE)
- EBITDA plus the owner's own pay and perks. It shows what the business earns for one owner who works in it, and it is the figure most buyers of small owner-run businesses price.
- Add-backs
- Costs added back to reported earnings because a new owner would not bear them: personal expenses run through the business, one-off costs, or owner pay above what the role would cost to fill.
- Recurring revenue
- Revenue that repeats without a new sale, such as maintenance agreements, service plans or contracts customers renew.
- Renewal rate
- The share of customers on agreements or plans who renew each year.
- Valuation multiple
- The number earnings are multiplied by to reach a value. It rises with how durable the earnings are and how easily a new owner can keep them.
As featured in
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Last reviewed September 25, 2026 against VA's valuation models.