EBITDA Multiples by Industry: 2026
Median EV/EBITDA across 17 industries runs from 5.4x in oil and gas exploration and production to 27.2x in semiconductors, a five to one spread on the same metric. The all-constituent median is 15.8x with a quartile band of 10.8x to 19.4x. The mechanism is cash conversion: the share of EBITDA that survives capital expenditure correlates with the industry multiple at 0.42, rising to 0.56 once regulated utilities are excluded, and utilities are the exception that proves it because their capital expenditure earns an allowed return. Scale is priced separately, with the largest market-capitalisation quartile clearing 17.8x against 11.6x for the smallest. Introduces The Conversion Gap.
- Sector
- SaaS
- Focus
- Valuations
- Published
- August 19, 2026
- Length
- 23 slides
- Reading time
- 13 minutes
Slide deck
23-slide deck. Desktop readers can page through the embedded viewer below. Mobile readers can open the direct PDF link.
Open slide deck PDF Key findings
- Median EV/EBITDA by industry runs from 5.4x in oil and gas E&P to 27.2x in semiconductors, a five to one spread; the all-constituent median across 118 companies is 15.8x.
- Cash conversion, the share of EBITDA surviving capital expenditure, correlates with the industry multiple at 0.42 across 17 industries and 0.56 excluding regulated utilities.
- Regulated utilities convert 1.8% of EBITDA and still clear 13.3x, because rate-base capital expenditure earns an allowed return rather than consuming earnings.
- Market capitalisation alone produces a 53% spread: the smallest quartile of constituents clears an 11.6x median against 17.8x for the largest.
- High margin does not buy a multiple: oil and gas E&P carries the highest median EBITDA margin in the set at 50.8% and the lowest multiple at 5.4x.
- Dispersion within an industry is typically 1.6x between the 25th and 75th percentile, widest in telecom at 2.4x and narrowest in medical devices at 1.3x.
- Financing conditions are supportive: the ICE BofA US high yield option-adjusted spread stood at 2.75% on 18 August 2026, tight against long-run averages.
- Global 2026 deal value is tracking $4tn, up 13%, on volumes down 13%, with megadeals at 48% of value against 26% in 2024, per PwC.
Methodology
Framework: The Conversion Gap. Every multiple is Windsor Drake's own computation from SEC filings and closing market prices on 19 August 2026, not licensed from a vendor table. Enterprise value is market capitalisation plus total debt plus minority interest less cash and short-term investments; EBITDA is trailing twelve month operating income plus depreciation and amortisation with impairment and restructuring added back. 204 candidates screened, 118 retained: constituents were dropped where a trailing twelve month figure could not be derived, where the multiple exceeded 45x and was not meaningful, or where an independent recomputation disagreed by more than 15%. This is one cross-section on one day and the levels will move.
Frequently asked questions
What is a normal EBITDA multiple in 2026?
Across 118 US-listed constituents in 17 industries the median is 15.8x, with a middle band of 10.8x to 19.4x on 19 August 2026. There is no single normal: industry medians run from 5.4x to 27.2x.
Which industries carry the highest EBITDA multiples?
Semiconductors leads at a 27.2x median, followed by aerospace and defence at 22.4x and internet and digital media at 20.5x. All three combine high cash conversion with long product or programme cycles.
Which industries carry the lowest?
Oil and gas exploration and production at 5.4x and telecom and cable at 7.7x. Both convert roughly half of EBITDA into cash after capital expenditure, and both face earnings streams the market treats as cyclical or structurally flat.
Why do two companies in the same industry trade so far apart?
Position inside the industry typically moves the multiple by about 1.6x between the 25th and 75th percentile. Growth rate, customer concentration, contract length, reinvestment burden and scale all sit inside that spread.
Does a bigger company get a higher multiple?
In this dataset yes. Sorted into market-capitalisation quartiles, the smallest quartile clears a 11.6x median and the largest 17.8x, a 53% premium. Scale buys index inclusion, liquidity and lower perceived operating risk.
Are public multiples what a private business gets?
No. They are the reference point. A private middle-market company is priced off the same drivers, then adjusted for scale, liquidity, customer concentration and the control being transferred. The industry band tells you which conversation you are in.
How should I use these numbers?
Find your industry band, then work out honestly where inside it you sit on cash conversion, growth and durability. The band is given; the position inside it is the part an owner can change before a process starts.
Companies covered
Public and private companies referenced in this report.
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Cite this report
EBITDA Multiples by Industry: 2026. Windsor Drake Market Intelligence, 2026. windsordrake.com/market-intelligence/reports/ebitda-multiples-by-industry-2026. Windsor Drake Market Intelligence data is free to use with attribution to Windsor Drake (windsordrake.com).