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.

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. 

How To Use Valuation Multiples To Value a Company

For those who are not familiar with using valuation multiples to value companies or those who are but need a refresher, I wrote posts detailing exactly how you can do that. 

Hopefully you can use them as helpful guides. Click on the link below to go to the post.

• How to value a company based on revenue
• How to value a company based on EBITDA
• How to value a company based on earnings
• How to find your own valuation multiples
• Other posts on how to value a company

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)