Manufacturing & Precision Machining Valuation Multiples (2026)
Manufacturing multiples hinge on customer concentration, proprietary tooling/IP, and CapEx age. Low concentration (<15% top customer) and modern CNC fleets support the upper half of the EBITDA range.
Manufacturing vs peer EV/EBITDA comps (2026)
Bars = median multiple; whiskers = published low–high range. Source: ExitVelocity lower middle-market benchmarks · Q3 2026.
Example: Precision CNC machine shop
Precision machining job shop, $6.5M revenue, top customer 12% of sales, modern 5-axis CNC mix, proprietary fixturing, professional GM.
At $980K EBITDA, a 4.8x manufacturing median implies ~$4.70M EV. Low concentration and modern CapEx support the upper band; aging equipment or a 30%+ top customer typically compresses toward 4.0x.
- • Top customer <15%
- • Modern CNC fleet
- • Proprietary tooling/IP
- • Deferred CapEx
- • Customer concentration >25%
Illustrative only — not a formal appraisal. Re-run with your financials in the free AI valuation calculator.
What moves manufacturing multiples
Proprietary IP/tooling, customer concentration <15%, modern CNC machinery.
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 Manufacturing EBITDA multiple in 2026?
Manufacturing & Precision Machining trades at a median of 4.8x EV/EBITDA (range 4.0x – 6.0x) in the lower middle market, based on ExitVelocity’s 2026 deal benchmarks.
What SDE multiple do Manufacturing businesses sell for?
Owner-operated manufacturing companies typically clear a median 3.0x SDE multiple (range 2.5x – 3.8x), depending on recurring revenue quality and owner dependency.
What drives premium Manufacturing valuations?
Proprietary IP/tooling, customer concentration <15%, modern CNC machinery.
Example: what is a Manufacturing business with $980,000 EBITDA worth?
Using 2026 manufacturing multiples, $980,000 EBITDA × 4.8x median ≈ $4,704,000 enterprise value (range roughly $3,920,000–$5,880,000 at 4x–6x). At $980K EBITDA, a 4.8x manufacturing median implies ~$4.70M EV. Low concentration and modern CapEx support the upper band; aging equipment or a 30%+ top customer typically compresses toward 4.0x.
Related industry multiples
Also see: 2026 example business valuations · SDE vs EBITDA · How AI business valuation works