Alternative valuation multiples and basis are provided as a general guideline to what may be a reasonable fair market value. Although based on a review of 
valuation guidelines for prospective purchasers of various types of business, these have been simplified and the multiples rounded up and are only a guideline for
financial review of life insurance cases. To use discretionary income for example would require a knowledge of the usual income taken by the owner of the business
since only the excess income of the owner is added back to the business income before the multiple is used. It is unlikely that the underwriter will have the usual income figure.
Note: when the multiple used is less than 1, it is expressed as a percentage to avoid confusion thus 50% multiple is used instead of .5
Type of business Valuation Method Multiple or price
Accounting - tax practices or CPAs Annual Revenue 1 to 1.5 x
Advertising agencies Annual Revenue 70% x
Aerospace products industry Annual Sales 70% x
Aerospace system industry Annual Sales 2 x
Agribusiness Operating cash flow 10 x
Air Conditioning/Heating contractors Annual Sales 30% x
Ambulance services Annual Revenue 40% x
Antique Malls EBITDA 2 to 4 x
Antique shops & dealers Annual Sales 25% x
Apparel - Clothing Stores Discretionary Income 75% to 150% x
Appliance repair Discretionary Income 1 to 1.5 x
Appliance store Monthly Sales 2 x
Architectural practices Annual Revenue 40% x
Art Galleries & Dealers Annual Revenue 30% x
Arts & Crafts; supplies Annual Sales 30% x
Assisted living facilities Annual Revenue 75% x
Audio & film companies EBITDA 4 to 6 x
Auto Dealer new cars EBITDA 3 to 6 x (large variance by franchise)
Auto Dealer used cars Wholesale value of cars plus other tangible assets No multiple
Auto glass repair Annual Revenue 25% x
Auto parts retail Annual Sales 50% x
Auto Rental Number of cars $1,000 per car
Auto repair (body/brake/lube/tuneup/transmission) Annual Revenue 45% x 
Auto tire store Discretionary Income 2 to 3 x
Bagel Shops Annual Sales 30% x
Bait & Tackle shops Annual Sales 25% x
Bakeries Annual Sales 50% x
Bakeries commercial Annual Sales 1 x
Bakery & Restaurant Annual Sales 40% x
Barber shops  Discretionary Income 10% to 25% x plus $1,500 per chair
Bars Annual Sales 40% x
Beauty Salons Monthly sales 4 x
Bed & Breakfast Annual Sales 4.5 x
Beer distributors Cases sold per year $5 per case 
Beer; wine & liquor stores retail Annual Sales 4 x
Bicycle shops Annual Sales 20% x
Billboard Advertising Co Annual Revenue 5 x
Billiards Annual Sales 50% x
Boat Dealers Adjusted Annual Earnings 1 x
Book Stores new Annual Sales 15% x
Bookkeeping Services Annual Revenue 50% x
Bottled Water delivery Annual Sales 1 x
Bowling Centers EBITDA 3 to 7 x
Bridal shops Annual Sales 15% x
Building materials/home centers EBIT   4 x
Bus Companies (charter/rental) Annual Revenue 40% x 
Cable TV Per subscriber 3000
Camera Shops Annual Revenue 15% x
Campgrounds EBITDA 8.5 x
Camps Annual Sales 2 x
Candy Stores Annual Sales 40% x 
Car Wash  Annual Sales 3 x
Carpet cleaning Annual Revenue 50% x
Carpet/floor goods sales Annual Sales 20% x
Casinos, in Vegas EBITDA 8 x
Casinos, Indian gaming management Operating income before interest 40% x 
Catering Annual Sales 30% x
Cellular telephone store Annual Revenue 50% x
Cemeteries EBIT 8 x
Check cashing services Annual Revenue 75% x
Chiropractic practice Annual Sales 30% x
Clothing stores, retail Annual Sales 50% x
Coal Operating cash flow 5.4 x
Cocktail Lounges Annual Sales 40% x
Coffee Shops Monthly sales 4 x
Coffee Shops gourmet Annual Sales 50% x
Coin laundries Annual Revenue 70% to 100% x
Collection agencies EBITDA 5 x
Computer sales Annual Sales 30% x
Computer services Annual Sales 60% x
Concrete bulk plant Annual Sales 35% x
Construction firms  Contracted business 25% x
Convenience stores EBITDA 4 x
Day Care Centers Discretionary Income 1 to 4 x
Defense products Annual Sales 60% x
Delivery services EBITDA 3 x
Dental labs Discretionary Income 2 x
Dental practice Collections  70% x
Distilled Spirits Operating cash flow 12 x
Distributors  Annual Sales 50% x
Dog grooming Annual Revenue 50% x
Donut shops Annual Revenue 50% x
Driving schools Discretionary Income 1 x
Dry Cleaners Annual Sales 75% to 100% x
E Commerce Discretionary Income 2.5 x
Electrical Equipment Free Cash Flow 7.2 x
Electronics - parts Annual Sales 1 x
Electronics - systems Annual Sales 70% x
Employment agencies Annual Revenue 50% x
Engineering services Operating income  5 x
Engineering/architectural practices Annual Revenue 40% x
Entertainment - film & recorded music Operating income 12 x
Environment control/commercial cleaning services Annual Sales 40% x
Equipment & Party rental/General rental business Annual Revenue 1 x
Event companies EBITDA 3 x
Fabric shops Monthly sales 3 x
Facilities support services Annual Sales 50% x
Family entertainment centers EBITDA 5 x
Fast food    Annual Sales 50% x 
Fitness Centers Annual Revenue 1 x
Florists Annual Sales 40% x 
Food Distribution EBIT 4 to 5 x
Food Processing  EBIT 5 to 7 x
Franchise non food Annual Sales 50% x
Fruit & vegetable wholesalers Discretionary Income 1 x
Fuel Dealers wholesalers EBITDA 1.5 x
Funeral homes/services Annual Revenue 1.5 to 2 x
Furniture Manufacturing EBITDA 4 to 7 x
Furniture refinishing Annual Revenue 50% x
Furniture Stores/ Appliance Monthly sales 2 x
Garage door sales & service Annual Sales 25% x
Garbage/Trash collection Annual Sales 1.5 to 2.5 x
Garden Centers/Nurseries Monthly sales 4 x
Gas Stations EBITDA 5 x
Gift Shops Annual Sales 40% x 
Golf carts sales & service Annual Sales 30% x
Golf courses private Discretionary Income 10 x
Golf courses public Annual Revenue 3 x
Golf shops Annual Sales 30% x
Grocery Stores Annual Sales 10% x
Guard service Annual Sales 25% x
Hardware Stores Annual Sales 20% x
Health & safety industries EBIT 3 to 5 x
Health Care Companies EBITDA 3.5 to 5 x
Health food services Discretionary Income 1 to 1.5 x
Hearing aid sales Annual Revenue 60% x
Heating contractors Annual Sales 25% x
Heating Oil Dealers Gross profit 1 x
Heating, Ventilating and Air conditioning  Annual Sales 30% x
Heavy equipment sales & service Discretionary Income 50% x
Hobby Shops Annual Sales 20% x
Home Health Care  EBITDA 3.5 to 5 x
Home Nursing agencies EBITDA 4 x
Hospital laundry Annual Sales 50% x
Hotels & Motels Annual Sales 40% x 
Household Products Operating income 11.5 x
Ice Cream shops Annual Sales 50% x
Incentive travel companies EBITDA 5 x
Industrial health & safety EBIT 5 to 7 x
Information and document management service EBITDA 4 to 6 x
Information technology companies EBITDA 4 to 6 x
Insurance agencies multiline Annual Revenue 1 to 2 x
Investment advice Annual Sales 1 x
Janitorial Services Annual Sales 50% x
Jewelry Stores EBIT 6 x
Land surveying Annual fee revenue 40% to 80% x
Landscape Contractors Annual Revenue 50% x
Law practices Annual fee revenue 40% to 100% x
Limousine services Annual Revenue 70% x
Linen service/supply Weekly Sales 25 x
Liquefied petroleum products EBITDA 4 x
Liquor stores Annual Sales 40% x
Lock & key shops Monthly sales 4 x
Machine Shops Annual Revenue 70% x
Mail & parcel centers Annual Sales 40% x
Mail order EBITDA 5 x
Management Consulting Discretionary Income 2.5 x
Manufacturing - machinery EBITDA 4 x
Manufacturing - metal valve and pipe fitting Annual Sales 1 x
Manufacturing - pharmaceutical preparation EBITDA 6 x
Manufacturing -general Annual Sales 50% x
Manufacturing small companies Discretionary Income 5 x
Marinas  EBITDA 10 x
Meat Markets Annual Sales 5 x
Meat Packing Operating income 10.7 x
Medical practices Annual fee revenue 20% to 60% x (prefer outside expert)
Mobile Home Parks Monthly income 3 to 8 x
Motor carriers/ freight  EBIT 5 x
Motorcycle dealerships Annual Sales 10% x
Movie Theaters Annual Sales 50% x
Music Stores Discretionary Income 4 to 7 x
Mutual Funds Assets 30% x
Natural Gas - distribution Free Cash Flow 14.7 x
Natural Gas - diversified Reserves (per thousand cubic feet)
Newspaper publishing co. daily Annual Revenue 1 to 2.5 x
Newspaper publishing co. weekly Annual Revenue 75% to 150% x
Newsstand dealers Annual Sales 50% x
Office Products Annual Sales 1 x
Oil - Drilling Operating income 7 x
Oil - Exploration Reserves (per barrel)
Oil - Integrated Operating cash flow 8.5 x
Oil - refining and marketing Operating cash flow 5.8 x
Oil Change Annual Sales 30% x
Optical practices Annual Sales 70% x
Optometry Practices Annual Revenue 60% x
Packaging - industrial  Annual Sales 70% x
Paint & Decorating retailers Annual Sales 20% x
Paper Products Free Cash Flow 13 x
Parking Lots Net income before taxes 1.5 x
Pawn Shops Annual Sales 40% to 70% x
Personal - care products Annual Sales 1.8 x
Personnel Agencies Annual Revenue 75% to 100% x
Pest Control EBITDA 5 x
Pet Shops Annual Sales 40% x 
Pharmaceuticals Annual Sales 2.9 x
Pharmacies  Annual Sales 25% x
Photo processing shops (stand alone) Annual Sales 50% x
Photographic studio Monthly sales 3 x
Picture Framing Annual Sales 40% x
Pizza Shops Monthly sales 4 x
Plastic Processing  Annual Sales 70% x
Pool Services Monthly Service sales 10 to 12 x
Portable Toilet Companies Annual Revenue 1 x
Power Tools & hardware Free Cash Flow 7.7 x
Power Washing Annual Revenue 50% x
Precision Instruments Operating cash flow 5.9 x
Printers  Annual Sales 40% x
Property Management non residential Annual Revenue 1 x
Publisher - book EBITDA 4 to 6 x
Publisher - internet EBITDA 8 x
Publisher - magazine Annual Net Revenue 2 x
Radio Stations Annual Revenue 1.5 to 6 x
Real Estate/brokerage Annual commissions 25% x
Rent to Own co. Net income    5 x (as average - wide variance)
Rental centers Annual Revenue 20% x
Repair service Annual Net 65% x 
Restaurants - full service Annual Sales 40% x 
Retail Business Annual Sales 40% x 
Retirement homes Bed $2000 to $3000 x
RV Parks Net Income 10 to 15 x
Schools - vocational/technical Annual Revenue 1 x
Securities brokerage Marked to Market value 1.5 x
Security Services Discretionary Income 2 to 3 x
Self Storage EBITDA 1 x
Semiconductors Annual Sales 90% x
Shipping Operating cash flow 9.4 x
Ski Resort stores Annual Sales 50% x
Soft Drink bottler Cases sold per year $10 x
Software Co Annual Revenue 2 to 3 x
Sporting Goods Store Annual Sales 30% x
Steel Fabrication EBIT 4 to 5 x
Tanning Salons Annual Sales 70% x
Taverns with slot machines Discretionary Income 3 x
Taxi Cab co. Annual Sales 50% x
Technological design service EBITDA 2.5 to 3.5 x
Technological manufacturing service EBIT 4 to 6 x
Technological test service EBITDA 3 to 3.4 x
Telecommunications Number of lines $700 to $1,400 x
Television Stations EBITDA 9 to 12 x
Temporary Agencies EBIT 1 to 9 x (wide variance need outside expert)
Title Abstract and settlement offices Discretionary Income 2.5 x
Tobacco Operating cash flow 12.6 x
Towing Companies Annual Revenue 70% x
Toy Stores Annual Sales 40% x 
Travel Agencies Annual Sales 30% x
Trophy studio Annual Sales 70% x
Truck Stops EBITDA 3.5 x
Trucking Co EBITDA 2 to 3 x
Uniform sales Annual Sales 40% x 
Utility - electric Operating cash flow 5.5 x
Vending Industry Annual Sales 75% x
Veterinary Practices Annual Sales 75% x
Video Stores Annual Revenue 70% to 100% x
Water Companies Meter $75 to $150 x
Web Base co (internet service providers) Monthly sales 3 to 6 x
Wholesale distributors Discretionary Income 1 to 2.5 x
Window Treatment Annual Sales 40% x
Wireless Communications EBITDA 2 to 5 x
EBITDA Earnings before interest, taxes, depreciation and amortization
Discretionary Income Discretionary Income- simplified defenitions:  operating earnings before interest, income taxes, depreciation, amortization plus 50% of owners salary.                                   Exclude income from one time gains such as sale of assets and income from interest gain (unless such income is part of normal operations). 50% of salary is compromise simplification of add back of excess salary relative to industry average. 
EBDT Earnings before depreciation and taxes
EBIT Earnings before interest and taxes; also called operating income.
Free Cash Flow Cash that is free to be paid back to the suppliers of capital. The simplified version that ignores adjusted tax rates is EBIT plus depreciation minus capital expenditures minus investment in net working capital. An increase in inventory or receivables for example ties up cash and is an increase in working capital. 
Marked to Market * Variations margin is a cash flow system where the owner of a futures contract adds or subtracts cash each day depending on the market loss or gain that day.  By this process each futures contract is marked to market each day.  This alternative valuation is presented only as a brief explanation in the event the underwriter receives a business financial statement with this entry.  For more details we suggest consulting the Tax Facts On Investments published each year by the National Underwriter Company. 
For further reading consider the following sources: 
Although written from the perspective of a prospective buyer seeking guidance on pricing, The Business Reference Guide- The Essential
Guide To Pricing A Business by Tom West cites multiple valuation suggestions for a number of business types and is updated each year.
The 2006 edition description can be viewed on by those interested.
Further accounting definition information is available online at
A much more complete description of Free Cash Flow is presented in Valuation: Measuring and Managing the Value of Companies by McKinsey & 
Company Inc., Tom Koller, Marc Goedhart, and David Wessels. This book was in its fourth edition at the time of this listing.