Physical Therapy Practice Valuation
Physical Therapy Business Valuation Calculator & Exit Planning Built for Practice Owners
We built one platform that tracks your physical therapy 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 Physical Therapy Owners Have No Idea What Their Business is Actually Worth
Current Physical Therapy Valuation Multiples (2026)
Physical Therapy values are strong due to increased buyer demand from PT consolidators like ATI, USPH, hospital systems. 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 No more waiting for annual appraisals or paying $15K+ for outdated reports.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 Physical Therapy Business Value
Revenue and earnings are the two most influential factors in your physical therapy business's valuation. But not all companies are valued equally. Here are the factors that move your number up—or down:
Visit Volume
300+ Visits/Week
Under 250 visits/week has difficulty covering overhead. Physical therapy clinics have high fixed costs—visit volume determines whether the practice covers overhead and generates profit.
Low volume = insufficient scale
Visits Per Therapist
50+ Visits/Week
50-60 visits/week per PT shows efficiency without burnout. This metric shows productivity—too low indicates scheduling problems, too high suggests burnout risk. 50-60 is the sweet spot.
Low productivity = inefficient
Referral Sources
Diverse Referrals
10+ physicians across specialties provide stability. Diversified referral sources mean no single physician retirement devastates the practice—buyers stress-test referral concentration.
Single referrer = concentration risk
Direct Access
20%+ Direct
Patients without referral show brand strength. Direct access percentage indicates community awareness and brand strength—patients choosing you without physician direction shows marketing effectiveness.
Referral-only = vulnerable
Payer Contracts
Strong Rates
Rates above Medicare impact profitability. Contract rates directly determine margins—practices with strong commercial payer contracts are significantly more profitable than Medicare-dependent clinics.
Poor contracts = margin compression
Multiple Locations
2+ Clinics
Multi-site shows scalability. Multiple locations demonstrate a scalable model and often command higher multiples from physical therapy consolidators looking for platform acquisitions.
Single location limits growth
How to Value a Physical Therapy Practice
The U.S. physical therapy industry includes over 40,000 practices generating approximately $45 billion in annual revenue. Physical therapy practices have attracted significant acquisition interest from both hospital systems and private equity groups. Here's how to value a PT practice using proven methods.
Seller's Discretionary Earnings (SDE) is the standard valuation approach for single-location PT practices, while EBITDA is used for multi-location groups. Physical therapy practices typically sell for 2.0x to 4.0x SDE, or 4.0x to 8.0x EBITDA for larger groups. Practices with multiple therapists, strong patient volumes, and payer diversification command the higher end.
Revenue multiples for PT practices generally range from 0.40x to 0.70x annual net revenue. Practices collecting above $1M with visits per therapist exceeding 10-12 per day demonstrate the productivity and efficiency that attract premium offers.
The critical valuation factor for physical therapy is referral source diversification and therapist retention. Practices that depend on referrals from one or two physicians face significant risk if those relationships change. Similarly, practices where the owner-therapist treats 80%+ of patients face provider-dependence discounts. The most valuable PT practices have multiple referral sources, employed therapists with their own patient followings, and a strong reputation for outcomes that sustains organic referral flow.
Physical therapy has seen active consolidation through companies like ATI Physical Therapy, U.S. Physical Therapy, and numerous PE-backed platforms. This has elevated valuations for practices meeting scale and quality thresholds. Use our free calculator above to get your instant estimate, then track your value monthly with YourExitValue.
Frequently Asked Questions
What multiple do physical therapy businesses sell for?
Most physical therapy businesses sell for 2.0x – 3.0x SDE or 0.5x – 0.8x annual revenue. However, the range is wide. Companies with strong visit volume can command significantly higher multiples. YourExitValue tracks exactly where you fall on each value driver.
How does visit volume affect my company's value?
Visit Volume is one of the biggest value drivers for physical therapy businesses. Pt consolidators like ati, usph, hospital systems 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 physical therapy business value?
Ideally 1 to 5 years before your target exit. This gives you time to improve your visit volume, reduce owner dependence, strengthen your team, and document growth trends buyers pay premium prices for.
Who buys physical therapy businesses?
Common buyers include PT consolidators like ATI, USPH, hospital systems, 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 physical therapy businesses?
Most physical therapy 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 (0.5x – 0.8x) are sometimes used as quick reference.
What's the fastest way to increase my physical therapy business value?
The fastest improvements typically come from: 1) Improving your visit volume 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.