Recycling Business Valuation
Recycling Services Business Valuation Calculator & Exit Planning Built for Recycling Company Owners
We built one platform that tracks your recycling company's value monthly, identifies exit gaps early, and ensures your personal finances align with your exit timeline.
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Most Recycling Company Owners Have No Idea What Their Business is Actually Worth
Current Recycling Services Valuation Multiples (2026)
Recycling business valuations depend on service type, contracts, and processing capability. Here's the market:
Every business is different. That's why you need to track your value.
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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 No more waiting for annual appraisals or paying $15K+ for outdated reports.
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What Actually Drives Recycling Value
Your environmental impact matters, but sophisticated buyers evaluate these factors that determine premium pricing:
Contract Base
Municipal, Commercial Contracts
Long-term contracts with municipalities and commercial accounts provide predictable revenue. Municipal recycling contracts often run 5-10 years with renewal options. Commercial recycling agreements create recurring service revenue. Contract portfolio strength significantly impacts valuation.
No contracts = commodity exposure
Processing Capability
MRF/Processing Infrastructure
Companies with processing capability—material recovery facilities (MRFs), balers, sorting lines—capture more value chain margin than pure haulers. Processing infrastructure creates barriers to entry. However, processing also creates commodity price exposure that needs management.
Hauling-only = pass-through margins
Material Mix
Diversified, Valuable Materials
Not all recyclables are equal—cardboard, aluminum, and certain plastics have better markets than mixed paper or low-grade materials. Understanding your material mix and its market value helps assess economics. Diversification reduces dependency on any single commodity.
Poor mix = low commodity value
Commodity Hedging
Price Protection Strategy
Recycling economics are exposed to commodity price swings. Companies with floor pricing in contracts, diversified end markets, or hedging strategies have more stable economics. Understanding and managing commodity exposure matters for sustainable profitability.
No protection = earnings volatility
Equipment & Facility
Modern Equipment, Adequate Capacity
Processing equipment—balers, sorters, conveyors—and facility infrastructure require significant investment. Modern, well-maintained equipment supports operations and throughput. Aging equipment may require replacement that impacts valuation.
Dated equipment = capex needed
End Market Relationships
Reliable Buyers for Materials
Where do you sell processed materials? Reliable end market relationships with mills, brokers, and manufacturers ensure you can move material. Strong relationships often mean better pricing. Understanding your end market position matters.
No markets = stranded material
How to Value a Recycling Services Business
The U.S. recycling services market includes thousands of companies providing collection, processing, and sale of recyclable materials including paper, plastic, metals, electronics, and construction waste.
EBITDA or SDE is used depending on company size. Recycling businesses typically sell for 2.0x to 5.0x EBITDA, or 2.0x to 3.5x SDE. Companies with processing infrastructure, municipal contracts, and diversified material streams command the highest multiples.
Revenue multiples generally range from 0.25x to 0.50x annual revenue. Companies with municipal collection contracts and materials recovery facilities (MRFs) achieve the upper end.
The unique valuation factor for recycling businesses is the commodity price exposure and contract structure. Recycling businesses face revenue volatility from commodity price fluctuations — paper, plastic, and metal prices can swing dramatically. Companies with fee-based contracts (collecting tipping fees regardless of commodity prices) reduce this exposure. Municipal contracts for curbside recycling collection provide predictable volume. Processing infrastructure (sorting lines, balers, shredders) represents significant capital investment but creates higher-margin operations compared to collection-only businesses.
Recycling has attracted growing investment driven by sustainability mandates and circular economy initiatives. Use our free calculator above to get your instant estimate, then track your value monthly with YourExitValue.
Frequently Asked Questions
What multiple do recycling companies sell for?
Recycling companies typically sell for 3.0x – 5.5x SDE or 5x – 9x EBITDA. Companies with strong contracts, processing capability, and managed commodity exposure command premium multiples.
How do contracts affect recycling value?
Significantly. Long-term municipal and commercial contracts provide predictable revenue. Contract portfolio strength reduces commodity price exposure and increases valuation.
Who buys recycling companies?
Waste management companies adding recycling, regional recyclers building scale, material processors seeking feedstock, and PE-backed waste platforms.
Does processing capability affect value?
Yes. Companies with MRFs and processing capture more margin than pure haulers. However, processing also creates commodity exposure that needs management.
How important is commodity price management?
Critical. Recycling economics are exposed to price swings. Companies with price protection, diversified materials, or hedging have more stable—and valuable—businesses.
What's the fastest way to increase my recycling company value?
Three high-impact moves: 1) Secure long-term municipal and commercial contracts, 2) Diversify material mix to reduce commodity dependence, 3) Develop end market relationships for reliable material sales.