Commercial Construction & Specialty Trades Valuation Multiples (2026)
Construction multiples track backlog quality, bonding capacity, and licensed trades on payroll. Project-based revenue without backlog visibility typically discounts to the low end of the range.
Construction vs peer EV/EBITDA comps (2026)
Bars = median multiple; whiskers = published low–high range. Source: ExitVelocity lower middle-market benchmarks · Q3 2026.
Example: Specialty commercial subcontractor
Commercial specialty contractor, $7.5M revenue, $4.0M bonded backlog, licensed masters on staff, owner still estimates.
At $750K EBITDA, a 4.1x construction median implies ~$3.08M EV. Bonded backlog quality supports the median; if estimating stays founder-only with thin backlog, buyers often underwrite nearer 3.5x.
- • Bonded backlog coverage
- • Licensed trades on payroll
- • Repeat GCs
- • Founder-only estimating
- • Lumpy project pipeline
Illustrative only — not a formal appraisal. Re-run with your financials in the free AI valuation calculator.
What moves construction multiples
Contract backlog size, bonding capacity, licensed master tradespeople on payroll.
Use these benchmarks with an AI valuation that adjusts for margin profile, growth, and owner dependency — not a flat industry average alone.
Frequently asked questions
What is the typical Construction EBITDA multiple in 2026?
Commercial Construction & Specialty Trades trades at a median of 4.1x EV/EBITDA (range 3.5x – 5.0x) in the lower middle market, based on ExitVelocity’s 2026 deal benchmarks.
What SDE multiple do Construction businesses sell for?
Owner-operated construction companies typically clear a median 2.8x SDE multiple (range 2.2x – 3.4x), depending on recurring revenue quality and owner dependency.
What drives premium Construction valuations?
Contract backlog size, bonding capacity, licensed master tradespeople on payroll.
Example: what is a Construction business with $750,000 EBITDA worth?
Using 2026 construction multiples, $750,000 EBITDA × 4.1x median ≈ $3,075,000 enterprise value (range roughly $2,625,000–$3,750,000 at 3.5x–5x). At $750K EBITDA, a 4.1x construction median implies ~$3.08M EV. Bonded backlog quality supports the median; if estimating stays founder-only with thin backlog, buyers often underwrite nearer 3.5x.
Related industry multiples
Also see: 2026 example business valuations · SDE vs EBITDA · How AI business valuation works