Pharmacy Business Valuation
Pharmacy Business Valuation Calculator & Exit Planning Built for Pharmacists
We built one platform that tracks your pharmacy business's value monthly, identifies exit gaps early, and ensures your personal finances align with your exit timeline.
1,000+ Businesses have joined YourExitValue.com
Most Pharmacy Owners Have No Idea What Their Business is Actually Worth
Current Pharmacy Valuation Multiples (2026)
Pharmacy values are strong due to increased buyer demand from regional chains, health systems, independent buyers. Here's what companies sell for:
Every business is different. That's why you need to track your value.
Included in Your Exit Value is a complete Exit Planning Assessment where you track your progress quarterly against your results from the previous quarter.
Know your number and watch it grow
Most business owners guess at their value. You'll know it with precision.
Our platform uses six proven valuation methodologies to give you a complete picture of what your business is worth today—and tracks how that number changes month over month. No more waiting for annual appraisals or paying $15K+ for outdated reports.
See your trends. Spot opportunities. Make informed decisions
What Actually Drives Pharmacy Business Value
Revenue and earnings are the two most influential factors in your pharmacy business's valuation. But not all companies are valued equally. Here are the factors that move your number up—or down:
Script Count
200+ Scripts/Day
Daily volume is primary driver. Under 150 struggles with DIR fees. Script count determines everything in pharmacy valuation—high volume spreads fixed costs and makes DIR fee clawbacks manageable.
Low volume = squeezed by fees
Specialty Pharmacy
Specialty License
Specialty accreditation provides dramatically higher margins. Specialty pharmacy revenue can be 10x retail margins—URAC or ACHC accreditation is a significant competitive moat that transfers with ownership.
Retail-only = PBM pressure
Clinical Services
MTM + Vaccines
MTM billing and immunizations create additional revenue. Clinical services diversify beyond dispensing and are increasingly important as traditional retail margins compress.
Dispense-only misses revenue
Payer Mix
Diverse Payers
Medicare Part D, commercial, cash is healthier than single-payer. Diverse payer mix reduces risk from any single PBM contract change or DIR fee increase.
Single-payer = contract risk
Long-Term Care
LTC Contracts
Nursing home contracts provide predictable recurring revenue. Long-term care pharmacy is highly valuable—LTC contracts provide consistent volume and often include delivery and packaging requirements.
Retail-only = traffic dependent
Location Quality
High-Traffic Area
Near hospitals or high traffic captures more prescriptions. Location drives new patient acquisition—proximity to prescribers and visibility directly impact growth potential.
Poor location limits growth
How to Value a Pharmacy
The U.S. independent pharmacy sector includes approximately 21,000 pharmacies generating over $90 billion in combined annual revenue. Independent pharmacies face unique challenges from PBM reimbursement pressures and chain competition, making accurate valuation critical for planning purposes.
Seller's Discretionary Earnings (SDE) is the standard method for valuing independent pharmacies. SDE normalizes financials by adding back owner-pharmacist compensation, benefits, and discretionary expenses. Pharmacies typically sell for 2.0x to 4.0x SDE, though this range has tightened in recent years as DIR fee clawbacks and declining reimbursement rates have compressed margins.
Revenue multiples for pharmacies generally range from 0.15x to 0.35x annual revenue — lower than many industries because pharmacy revenue includes significant cost-of-goods for medications. Prescription count is often a more meaningful metric: pharmacies are frequently valued at $3,000 to $7,000 per active prescription transferred.
The unique valuation factor in pharmacy is the prescription file value and PBM contract mix. An active prescription file — the number of patients filling monthly prescriptions at your location — is the core asset being purchased. Buyers evaluate the payer mix carefully: a pharmacy heavily dependent on a single PBM with declining reimbursement rates is riskier than one with diversified payer contracts and growing specialty or compounding revenue, which carry higher margins.
Independent pharmacy valuations have been pressured by PBM consolidation and reimbursement challenges. However, pharmacies that have diversified into specialty pharmacy, compounding, long-term care, or clinical services (immunizations, point-of-care testing, MTM) have seen their valuations hold or increase. Use our free calculator above to get your instant estimate, then track your value monthly with YourExitValue.
Frequently Asked Questions
What multiple do pharmacy businesses sell for?
Most pharmacy businesses sell for 2.0x – 3.0x SDE or 0.15x – 0.3x annual revenue. However, the range is wide. Companies with strong script count can command significantly higher multiples. YourExitValue tracks exactly where you fall on each value driver.
How does script count affect my company's value?
Script Count is one of the biggest value drivers for pharmacy businesses. Regional chains, health systems, independent buyers specifically look for companies with strong performance here. Improving this metric can significantly increase your multiple.
How long before selling should I start tracking my pharmacy business value?
Ideally 1 to 5 years before your target exit. This gives you time to improve your script count, reduce owner dependence, strengthen your team, and document growth trends buyers pay premium prices for.
Who buys pharmacy businesses?
Common buyers include regional chains, health systems, independent buyers, as well as individual buyers looking to own a business and strategic acquirers. Each buyer type values different aspects. YourExitValue helps you understand what each looks for.
What valuation method is used for pharmacy businesses?
Most pharmacy businesses are valued using SDE (Seller's Discretionary Earnings) multiples for smaller companies under $1M in earnings, and EBITDA multiples for larger companies. Revenue multiples (0.15x – 0.3x) are sometimes used as quick reference.
What's the fastest way to increase my pharmacy business value?
The fastest improvements typically come from: 1) Improving your script count to hit the target, 2) Reducing owner dependence, 3) Documenting your systems and processes, and 4) Cleaning up financials. Most owners add 20-40% in 12-24 months.