Roofing Business Valuation Calculator
Quickly estimate your roofing company's value using industry-standard methods based on EBITDA and Seller's Discretionary Earnings (SDE) multiples. This free roofing business valuation calculator is built for roofing contractors (residential and commercial) and multi-service exterior remodeling businesses looking to understand their current market value.
This estimate provides a helpful range, but real valuations go well beyond revenue, EBITDA, and mix. Leadership strength, operational maturity, cultural fit with the acquiring platform, the owner's long term goals, the age and stability of the business, and the story behind its growth all play an important role in determining true enterprise value.
If you're considering a partnership, reach out to us for a more personalized valuation and a conversation about the future of your business.
Sample Roofing Business Valuation
Annual Revenue: $5,000,000
EBITDA: $800,000
Business Type: Residential /Commercial Mix: 100/0
Retail/Insurance Mix: 100/0
Roofing/Other (Siding, Windows etc): 100/0
EBITDA Valuation: Low
Low End Valuation: $2,880,000 (3.6x EBITDA)
High End Valuation: $4,500,000 (5.63x EBITDA)
Positive and Negative Valuation Signals
Positive Valuation Signals:
- Strong EBITDA or SDE trends
- Documented systems and processes
- Repeat customer base
- Operational Maturity (owner not required day-to-day)
- Clean 3-year financials
Negative Valuation Risks:
- Heavy reliance on owner for sales or ops
- No SOPs or unclear job costing
- Declining year-over-year revenue
- Unclear revenue attribution or seasonal instability
- Heavy storm or insurance driven revenue
SDE vs EBITDA Valuation
EBITDA (Earnings Before Interest, Taxes, Depreciation, & Amortization) shows core operating profit for larger companies, while SDE (Seller's Discretionary Earnings) is for smaller, owner-operated businesses, adding back the owner's salary, personal expenses, and perks to reveal total cash flow available to one person, making SDE a more comprehensive figure for individual buyers and EBITDA better for institutional investors assessing scalable operations.
EBITDA = Earnings before interest, taxes, depreciation, amortization.
SDE = EBITDA + Owner Salary + Personal Expenses
| Revenue Tier | Common EBITDA Multiple |
|---|---|
| Under $1M | 2.0x – 3.0x |
| $1M–$5M | 3.5x – 5.0x |
| $5M+ | 5.0x – 8.0x |
For SDE-based valuations (most common for smaller owner-operated businesses), use a multiple of 2.5x to 4x.
How to Maximize Your Roofing Business Value
- Clean up your financials (3 years of P&Ls, balance sheets, job costing)
- Reduce dependency on you as the owner
- Develop next-level leadership and management depth
- Develop repeatable systems and SOPs like job costing
- Retain key staff and customers
- Consider roll-over equity from a de-risked, diversified partner
How much do roofing companies sell for?
Typically 3x–6x EBITDA or 2.5x–4x SDE. A business earning $500K in EBITDA could sell for $1.5M to $3M.
What increases my roofing business’s value?
Recurring revenue, minimal owner reliance, documented systems, leadership strength, and partner fit with the buyer.
Is this valuation calculator accurate?
It uses some standardized logic and benchmarks, but for accurate pricing or M&A planning, a formal valuation is required.
What happens to your team?
See top factors to consider when partnering with private equity.