EBITDA Multiples For Trucking Companies

Using EBITDA multiples for trucking companies is one way to value a trucking company for the purpose of starting a trucking business, selling an existing trucking business, or for academic/work purposes. 

For most industries, the common valuation methods are (1) income approach, (2) comparables approach, and (3) asset-based approach. 

For asset-heavy businesses, like trucking, asset-based and comparables might be the most useful. 

Using EBITDA multiples is a good multiple to use in the comparables approach because EBITDA is a good measure to see whether the trucking company has streamlined its operations to reduce its overhead as much as it can. 

Sales (or revenue) multiple may be good to assess as well, but not as useful, because it doesn’t show the company’s profitability. 

I looked up and analyzed median and average EBITDA multiples for trucking companies. 

EBITDA multiples for trucking companies (using public companies)

I screened for publicly traded trucking companies in North America that have positive EBITDA. 

I also eliminated companies with multiples that were egregiously too high (i.e. greater than 30.0x multiple) and too low (i.e. less than 0.0x multiple).

The number of companies in the analysis after applying this set of criteria was 25. 

The median EBITDA multiple for trucking companies using public companies’ data is 7.0x.

EBITDA multiples for trucking companies (using recent M&A and investment transactions)

Similarly, I also looked up recent M&A and investment transactions to see what the implied EBITDA multiple was in these transactions. 

Transactions include acquisitions and investments made by third parties. I looked up the last 5 years’ data. 

The number of transactions used in this analysis after applying this set of criteria was 157.

The median EBITDA multiple for trucking companies using M&A and investment transactions’ data is 8.1x.

Ebitda Multiples For Trucking Companies

Findings & Observations about EBITDA multiples for trucking companies

The average median EBITDA multiple from the two methods above is ~7.5x. 

In the past, EBITDA multiples ranged from 4.0x – 5.0x. It could be that the trend has gone up. 

Industry-specific valuation metrics

There are key metrics that are specific to each industry based on the most impactful variables affecting the businesses. 

For example, among trucking companies, a performance metric is the average transportation cost per mile/weight

This little book on starting your own trucking company is a good resource for these performance metrics. 

How the Freymillers built a trucking company from scratch to over $100 million of revenue per year is quite inspiring. 

There really isn’t a kind of business that will take you far and wide and give you the reach of the diverse people and places as trucking does. 

Finally, check out this article if you’re interested in valuing a trucking company for the purpose of buying or selling it – there is good info on the process and marketplaces

List of companies used in calculating EBITDA multiples for trucking companies

Public Companies

Hertz Global Holdings, Inc. (NYSE:HTZ)
Avis Budget Group, Inc. (NasdaqGS:CAR)
Old Dominion Freight Line, Inc. (NasdaqGS:ODFL)
ENTREC Corporation (TSX:ENT)
J.B. Hunt Transport Services, Inc. (NasdaqGS:JBHT)
Landstar System, Inc. (NasdaqGS:LSTR)
Heartland Express, Inc. (NasdaqGS:HTLD)
Saia, Inc. (NasdaqGS:SAIA)
AMERCO (NasdaqGS:UHAL)
TFI International Inc. (TSX:TFII)
Knight-Swift Transportation Holdings Inc. (NYSE:KNX)
Mullen Group Ltd. (TSX:MTL)
Marten Transport, Ltd. (NasdaqGS:MRTN)
YRC Worldwide Inc. (NasdaqGS:YRCW)
Schneider National, Inc. (NYSE:SNDR)
U.S. Xpress Enterprises, Inc. (NYSE:USX)
Werner Enterprises, Inc. (NasdaqGS:WERN)
Daseke, Inc. (NasdaqCM:DSKE)
Universal Logistics Holdings, Inc. (NasdaqGS:ULH)
P.A.M. Transportation Services, Inc. (NasdaqGM:PTSI)
USA Truck, Inc. (NasdaqGS:USAK)
Covenant Transportation Group, Inc. (NasdaqGS:CVTI)
Ryder System, Inc. (NYSE:R)
Patriot Transportation Holding, Inc. (NasdaqGS:PATI)
ArcBest Corporation (NasdaqGS:ARCB)

Transactions

02/29/2016 Trans Polonia S.A. (WSE:TRN)
03/11/2016 Dav El of Miami
04/04/2014 Hyundai Glovis Co., Ltd. (KOSE:A086280)
07/28/2016 Autobuses Voramar El Gaucho s.l.
07/24/2016 Aviation Links Ltd. (TASE:AVIA)
04/12/2016 Public Joint Stock Company TransContainer (LSE:TRCN)
07/24/2016 Aviation Links Ltd. (TASE:AVIA)
10/10/2018 Nha Trang Port Joint Stock Company
09/13/2013 Zheshang Development Group Co.,Ltd (SZSE:000906)
12/01/2014 Shagrir Group Vehicle Services Ltd (TASE:SHGR)
05/15/2014 ZERO Co., Ltd. (TSE:9028)
10/10/2017 PT Bayan Resources Tbk (IDX:BYAN)
10/09/2014 Trans Polonia S.A. (WSE:TRN)
04/04/2014 Kwoon Chung Bus Holdings Limited (SEHK:306)
04/07/2014 Kwoon Chung Bus Holdings Limited (SEHK:306)
02/11/2016 Wallenius Wilhelmsen ASA (OB:WALWIL)
06/03/2018 Vietnam Sun Corporation (HOSE:VNS)
10/14/2015 Regnon Spólka Akcyjna (WSE:REG)
04/09/2018 National Beef Packing Company, LLC
12/21/2016 Public Joint Stock Company Nizhnekamskneftekhim (MISX:NKNC)
02/12/2016 Itec Corporation (JASDAQ:9964)
10/23/2018 Public Joint Stock Company TransContainer (LSE:TRCN)
10/02/2015 Korea Integrated Freight Terminal Co., Ltd
02/07/2018 East West Holdings Limited (BSE:540006)
08/13/2015 Cementos Argos S.A. (BVC:CEMARGOS)
02/18/2015 KION GROUP AG (XTRA:KGX)
01/06/2014 Prazská plynárenská, a.s.
07/31/2017 Danyang Hurricane Logistics Co., Ltd.
10/17/2014 The Medical and Surgical Centre Limited (MUSE:MASC.I0000)
02/20/2014 SG Fleet Group Limited (ASX:SGF)
10/17/2014 The Medical and Surgical Centre Limited (MUSE:MASC.I0000)
11/17/2016 PT Bayan Resources Tbk (IDX:BYAN)
11/14/2016 PT Bayan Resources Tbk (IDX:BYAN)
11/15/2016 PT Bayan Resources Tbk (IDX:BYAN)
05/25/2017 Jackspeed Corporation Limited (SGX:J17)
02/20/2018 Mitsubishi Motors Corporation (TSE:7211)
09/14/2015 Lubelski Wegiel Bogdanka S.A. (WSE:LWB)
08/16/2019 Shenzhen Kondarl (Group) Co., Ltd. (SZSE:000048)
10/31/2018 De Blaa Omnibusser A/S
09/23/2015 Grupo Empresas Navieras S.A. (SNSE:NAVIERA)
02/24/2014 Raya Holding for Financial Investments SAE (CASE:RAYA)
01/16/2017 Azienda Trasporti Verona s.r.l.
06/09/2017 TAV Havalimanlari Holding A.S. (IBSE:TAVHL)
06/21/2018 Motus Holdings Limited (JSE:MTH)
01/20/2015 Pantos Logistics Co.,Ltd
02/24/2019 Public Joint Stock Company Uralkali (MISX:URKA)
02/10/2017 FIH group plc (AIM:FIH)
05/13/2015 Químicas Meroño, S.L.
03/19/2014 Kyushu Sanko-Unyu Co., Ltd.
02/07/2018 East West Holdings Limited (BSE:540006)
12/21/2018 Pantos Logistics Co.,Ltd
06/09/2017 Iquique Terminal Internacional S.A.
08/30/2018 Gunnar Knutsen AS
10/10/2018 Shandong Zhonglu Oceanic Fisheries Company Limited (SZSE:200992)
07/10/2017 Servicios Empresariales Ader SL
12/09/2015 LOTTE Corporation (KOSE:A004990)
06/12/2018 Norvial S.A.
11/27/2018 Zheshang Development Group Co.,Ltd (SZSE:000906)
03/06/2014 Eddie Stobart Logistics plc (AIM:ESL)
01/06/2015 Zheshang Development Group Co.,Ltd (SZSE:000906)
10/30/2015 LOTTE Corporation (KOSE:A004990)
11/12/2015 PT Tunas Ridean Tbk (IDX:TURI)
03/18/2016 AS Tallink Grupp (TLSE:TAL1T)
07/23/2014 Feria de Osorno S.A. (SNSE:FERIAOSOR)
02/25/2016 Autocares Herranz S.L.
04/15/2015 S.I.T.T.A.M. S.r.l.
02/24/2014 Rumo S.A. (BOVESPA:RAIL3)
05/07/2014 Patriot Transportation Holding, Inc. (NasdaqGS:PATI)
09/16/2019 Pfleiderer Group Spólka Akcyjna (WSE:PFL)
07/11/2019 Pfleiderer Group Spólka Akcyjna (WSE:PFL)
08/05/2014 Eusu Holdings Co., Ltd. (KOSE:A000700)
01/10/2019 Sheehy Mail Contractors, Inc.
04/28/2015 XPO Logistics Europe SA (ENXTPA:XPO)
04/28/2015 XPO Logistics Europe SA (ENXTPA:XPO)
07/05/2018 Landair Holdings, Inc.
12/05/2018 Zhenjiang Baohua Logistics Co.,Ltd
05/17/2019 The Medical and Surgical Centre Limited (MUSE:MASC.I0000)
06/19/2017 Portonave S.A. – Terminais Portuários de Navegantes
05/07/2019 Nittofc Co., Ltd.
08/03/2016 Aramex PJSC (DFM:ARMX)
12/03/2014 Regnon Spólka Akcyjna (WSE:REG)
02/26/2014 PT Dharma Satya Nusantara Tbk (IDX:DSNG)
02/26/2014 PT Dharma Satya Nusantara Tbk (IDX:DSNG)
02/23/2017 Rumo S.A. (BOVESPA:RAIL3)
10/29/2014 Ferrari N.V. (NYSE:RACE)
10/26/2017 Fliway Group Limited
04/04/2018 Al Kout Industrial Projects Company K.P.S.C. (KWSE:ALKOUT)
05/02/2018 Al Kout Industrial Projects Company K.P.S.C. (KWSE:ALKOUT)
09/22/2015 Korea Express BND Co., Ltd.
03/06/2015 Glencore plc (LSE:GLEN)
12/02/2014 Regnon Spólka Akcyjna (WSE:REG)
08/15/2014 Vietnam Dairy Products Joint Stock Company (HOSE:VNM)
08/19/2014 Vietnam Dairy Products Joint Stock Company (HOSE:VNM)
10/21/2015 Korea Express BND Co., Ltd.
07/16/2018 VTG Aktiengesellschaft (DB:VT9)
10/07/2014 Vietnam Dairy Products Joint Stock Company (HOSE:VNM)
04/05/2016 PT Tunas Ridean Tbk (IDX:TURI)
05/10/2019 InterEuropa d.d. (LJSE:IEKG)
03/07/2018 Broto Legal Alimentos S/A
09/25/2015 Compañía Logística de Hidrocarburos CLH, S.A.
03/19/2015 Hyundai Glovis Co., Ltd. (KOSE:A086280)
09/09/2014 PT Dharma Satya Nusantara Tbk (IDX:DSNG)
06/11/2018 Envision Healthcare Corporation
12/08/2017 KAMAZ Publicly Traded Company (MISX:KMAZ)
01/27/2016 Compañía Logística de Hidrocarburos CLH, S.A.
07/20/2018 Eimskipafélag Íslands hf. (ICSE:EIM)
11/30/2017 MBK Public Company Limited (SET:MBK)
11/18/2014 Compañía de Distribución Integral Logista, S.A.U.
12/19/2013 Jiangsu Xinning Modern Logistics Co.,Ltd (SZSE:300013)
02/24/2019 VTG Aktiengesellschaft (DB:VT9)
11/27/2014 PT Dharma Satya Nusantara Tbk (IDX:DSNG)
10/13/2017 Songnisan Express Co., Ltd.
02/21/2014 Scania AB (publ)
01/03/2019 Hanjin Transportation Co., Ltd. (KOSE:A002320)
01/03/2019 Hanjin Transportation Co., Ltd. (KOSE:A002320)
03/24/2016 Seibu Holdings Inc. (TSE:9024)
01/04/2019 Hanjin Transportation Co., Ltd. (KOSE:A002320)
09/30/2019 Transport Joosen NV
05/11/2016 LOTTE Global Logistics Co., Ltd
11/17/2016 Síntax Logística, S.A.
08/23/2017 Shanxi Coal Transportation and Sales Group Co., Ltd.
03/02/2017 LOTTE Global Logistics Co., Ltd
06/08/2017 Kofola CeskoSlovensko a.s. (SEP:KOFOL)
10/29/2019 Suntrust Home Developers, Inc. (PSE:SUN)
06/14/2018 Samtrans Skol- och handikapptransporter Stockholm AB
03/26/2018 PT Tunas Ridean Tbk (IDX:TURI)
07/06/2018 Orient Overseas (International) Limited (SEHK:316)
07/09/2017 Orient Overseas (International) Limited (SEHK:316)
06/14/2017 Compañía Logística de Hidrocarburos CLH, S.A.
02/06/2018 Parking Solutions Co., Ltd.
01/11/2019 Compañía Logística de Hidrocarburos CLH, S.A.
12/12/2016 Vietnam Dairy Products Joint Stock Company (HOSE:VNM)
01/23/2019 Planetree International Development Limited (SEHK:613)
10/25/2019 Hanjin Transportation Co., Ltd. (KOSE:A002320)
12/11/2014 Hainan Airlines Holding Co.,Ltd. (SHSE:900945)
07/17/2014 LOTTE Global Logistics Co., Ltd
04/01/2014 Gati Limited (BSE:532345)
04/08/2019 Summit Ascent Holdings Limited (SEHK:102)
01/23/2019 Planetree International Development Limited (SEHK:613)
04/23/2019 Summit Ascent Holdings Limited (SEHK:102)
02/23/2017 Rumo S.A. (BOVESPA:RAIL3)
04/18/2017 Chin Hin Group Property Berhad (KLSE:CHGP)
03/15/2016 Pacific National Holdings Pty Ltd
04/05/2019 Automotive Holdings Group Limited
08/29/2016 PT Siloam International Hospitals Tbk (IDX:SILO)
07/11/2016 T&G Global Limited (NZSE:TGG)
12/04/2014 Samil Co.Ltd. (KOSDAQ:A032280)
11/14/2017 AS System, K.K.
06/10/2014 OT Logistics S.A. (WSE:OTS)
02/27/2015 Shinhung Global Co., Ltd.
05/05/2014 Protrans International
08/27/2019 Wiseway Group Limited (ASX:WWG)
11/10/2017 United Motors Lanka PLC (COSE:UML.N0000)
03/16/2018 Saigon Beer – Alcohol – Beverage Corporation (HOSE:SAB)
12/16/2016 Dongbu Express Co., Ltd.
10/29/2016 Sichuan Lutianhua Company Limited (SZSE:000912)
12/07/2016 Frontline Corporation Limited (BSE:532042)

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