Industry benchmarks
Terminal Value by Industry
Industry context for the two inputs that drive terminal value: WACC and the exit multiple. The Damodaran NYU Stern dataset is the standard citable reference for both, updated annually in January.
Damodaran Jan 2026Pull live, do not copy stale figures
Why this page does not print sector-level WACC and EV/EBITDA numbers
The Damodaran dataset is updated every January. Printing a number on a page that goes stale within twelve months would betray our editorial principle that every figure carry an honest verification date. The linked Damodaran pages publish the live tables; we surface the sector context, the gotchas, and the link.
Sector notes
Where to be careful when pulling terminal value inputs
| Sector | Terminal value note |
|---|---|
| Software (System & Application) | High EV/EBITDA reflecting growth and gross-margin profile. Use mid-range, not 75th percentile, for terminal value. |
| Semiconductors | Highly cyclical. Normalise EBITDA over a full cycle before applying any multiple. |
| Drugs (Pharmaceutical) | Patent-cliff risk in terminal value. Consider an explicit fade period before steady state. |
| Banks (Money Center) | EV/EBITDA not meaningful. Use price-to-tangible-book or dividend discount instead. |
| Retail (General) | Lower multiples reflect low margins. Watch for one-off store closures distorting EBITDA. |
| Telecom Services | Capex-heavy. Free cash flow is materially below EBITDA. Exit multiples lower than headline EV/EBITDA suggests. |
| Oil and Gas Production | Commodity-price sensitive. Normalise oil-price assumption over the explicit window. |
| Auto and Truck | Cyclical. Earnings-power multiples often more useful than spot-EBITDA multiples. |
| Power | Regulated returns cap upside. Stable cash flows make Gordon Growth often more natural than exit multiples. |
| Food Processing | Mature, stable demand. Often a clean Gordon Growth fit at low g. |
Live data sources
The two Damodaran tables you should bookmark
Cost of Capital by Industry (US)
Industry-level WACC, cost of equity, cost of debt, levered beta. Updated every January. Use this for the discount rate input to terminal value.
pages.stern.nyu.edu/.../wacc.htmlEV / EBITDA by Industry (US)
Industry-level EV/EBITDA, EV/EBIT, EV/Sales. Updated every January. Use the trailing or forward column that matches your terminal-year EBITDA definition.
pages.stern.nyu.edu/.../vebitda.htmlCross-links
Related pages
Last verified June 2026. Damodaran NYU Stern Cost of Capital by Industry and EV/EBITDA by Industry, January 2026 update.