Running the business · Guide
How to Value a Billboard or Billboard Company (2026)
By Gabie Research · Updated Oct 12, 2026 · 9 min read
Short answer
Buyers value a billboard by its cash flow times a multiple. Trade sources quoted in Billboard Insider put that multiple at 8 to 12 times billboard cash flow. Public companies are worth more. By our math from 2025 filings, Lamar traded near 15 times EBITDA at year end and OUTFRONT near 13.5. Lease term, permits, location, digital and vacancy move the number.
- Billboard cash flow is revenue minus lease costs, direct costs and an imputed sales cost of 5% to 20%. It leaves out the owner's overhead (Billboard Insider, 2024).
- Billboard Insider puts plant sales at 10 to 12 times billboard cash flow (2024). A buyer it quoted in 2025 said 8 to 12 times for a target with high vacancy.
- By our math from 2025 filings, Lamar traded at 15.3 times EBITDA and OUTFRONT at 13.5 times on December 31, 2025. Both were higher by October 9, 2026.
- Clear Channel Outdoor's $6.2 billion sale price is about 12.8 times its 2025 EBITDA, by our math.
- Lamar's Verde Outdoor deal paid $147.6 million for more than 1,500 faces, or under $98,400 a face.
A buyer prices a billboard by its cash flow times a multiple. Trade sources quoted in Billboard Insider put that multiple at 8 to 12 times billboard cash flow. The big public companies are worth more. By our math from their 2025 reports, Lamar traded near 15 times EBITDA at year end. OUTFRONT traded near 13.5 times. This guide shows the formula, the public numbers, what moves the multiple and a worked example.
How do buyers price a billboard company?
Most sales use one formula. Value equals billboard cash flow times a multiple. Billboard cash flow is the cash a plant makes after the direct costs of the boards (Billboard Insider). It leaves out costs a buyer won't carry, like the owner's pay.
| In billboard cash flow | Left out |
|---|---|
| Ad rent, vinyl installation fees and rental income such as cell space | Owner pay, owner phone and internet, corporate rent, car allowance, travel and dues |
| Lease costs, vinyl, utilities, permits, maintenance, property and sales taxes | Depreciation and amortization |
| An imputed sales cost of 5% to 20% of revenue: 5% to 10% for large plants, 15% to 20% for small ones | Interest and financing charges |
| Spending on new locations or digital conversions |
Source: Billboard Insider, June 2024.
EBITDA is a different number. Public companies report it. It counts the company's own overhead. So a seller's EBITDA is usually lower than its billboard cash flow. Always ask which one a price uses.
Boards are usually sold in groups, with their leases. North Carolina's tax guide says these sales are hard to track. Most are not recorded on deeds (NC Department of Revenue). That is why buyers lean on cash flow and not on a price per board.
What multiple do billboards sell for?
Nobody keeps a public list of small deals. These are the rules of thumb that trade experts have printed.
| Who | Multiple | What it applies to | Date |
|---|---|---|---|
| Billboard Insider | 10 to 12 times | Billboard cash flow of a well-kept plant with a decent lease portfolio | Jun 2024 |
| Chris Hillard, Legacy Outdoor | 8, 10 or 12 times | Cash flow, when the target has high vacancy | Feb 2025 |
| Billboard Insider | 17.8 times | What Lamar's stock traded at, as the article put it | Feb 2025 |
| Sean Reilly, Lamar's CEO | "Slightly below the mid-teen-ish range" | The multiple from the seller's point of view, before synergies | Feb 2026 |
| Jim Johnsen, Johnsen Fretty | 2 to 3 turns higher than outdoor assets | Easements, where a buyer owns the land interest | Aug 2023 |
Sources: Billboard Insider, 2024, Billboard Insider, 2025, Lamar Q4 call, Billboard Insider on easements.
These do not match, and that is fine. They measure different things. Some are cash flow. Some are EBITDA. Some come from the buyer's side and some from the seller's. The same 2025 article warns against assuming a 10-times buy will later sell at 12. It adds that cash flow falls in a recession, and multiples shrink too.
What do public companies trade at?
The three public operators file a 10-K each year. We took each one's 2025 EBITDA, debt, cash and share count. Then we added the share price. Enterprise value is the stock value plus debt, less cash.
| Company | 2025 EBITDA | Debt less cash | Shares |
|---|---|---|---|
| Lamar | $1,058.2 million | $3,354 million | 101.3 million |
| OUTFRONT | $499.3 million (Adjusted OIBDA) | $2,484 million | 176.1 million |
| Clear Channel Outdoor | $484.2 million (our math) | $4,913 million | 498.5 million |
Sources: Lamar 10-K, OUTFRONT 10-K, Clear Channel Outdoor 10-K. Share counts are from February 2026. Clear Channel's EBITDA is its $595.1 million segment profit less $110.9 million of corporate costs.
Here are the multiples, using stock prices from Yahoo Finance.
| Company | Price, Dec 31, 2025 | Enterprise value ÷ 2025 EBITDA | Price, Oct 9, 2026 | Enterprise value ÷ 2025 EBITDA |
|---|---|---|---|---|
| Lamar | $126.58 | 15.3 times | $146.47 | 17.2 times |
| OUTFRONT | $24.10 | 13.5 times | $29.98 | 15.5 times |
Both stocks rose in 2026, so the multiples rose with them. Clear Channel's sale is covered below.
Billboard Insider ran a second set in September 2026. It used estimated 2026 EBITDA from Solomon Partners. The median for out of home companies was 11 times. Lamar was 16.5, OUTFRONT 13.2 and JCDecaux 7.1 (Billboard Insider). Our numbers differ for plain reasons. We used 2025 results, and the dates and prices differ. The article says its numbers would run a turn or two higher on trailing results. They would also run higher on billboard cash flow.
Why is Lamar worth more than OUTFRONT? The article gives two reasons. Lamar has long-term billboard leases and owns the land under one-eighth of its boards. OUTFRONT has short-term transit contracts, which carry more risk.
What deals have been published?
Three public deals give a price to work from.
| Deal | Date | Price | What it works out to |
|---|---|---|---|
| Mubadala Capital and TWG Global buy Clear Channel Outdoor | Announced Feb 9, 2026 | $2.43 a share; $6.2 billion with debt | About 12.8 times 2025 EBITDA, our math. Solomon shows 11 times on 2026 estimates |
| Lamar buys Verde Outdoor | Jul 2, 2025 | $147.6 million, paid in Lamar units | More than 1,500 faces, so under $98,400 a face |
| Lamar's other 2025 deals | 2025 | About $191.1 million in cash on acquisitions | No face count given |
Sources: Clear Channel Outdoor release, Lamar 10-K, Billboard Insider.
The Clear Channel price carried a 71% premium over its unaffected stock price. Its business also covers street furniture and airports, so it is not a pure billboard price.
Here is a check on the Verde number. Lamar's value at year end was about $16.2 billion. Spread over its 159,300 displays, that is about $101,600 each. That is our math, and it spreads the whole company over every display. It lands close to Verde's price, which is a good sign.
What moves the multiple?
Two plants with the same cash flow can sell at different prices. Buyers look at these things first.
| Factor | What a buyer checks | Why it moves the price |
|---|---|---|
| Lease term | How many years are left, and who owns the land | Lamar owns the land under one-eighth of its boards, and its multiple is higher. Each added dollar of yearly lease cost comes off the price at a high multiple |
| Permits | Valid state permits, and whether boards are legal nonconforming | OUTFRONT says about 75% of its US structures could not be built under today's rules, so the permits are hard to replace |
| Location | Coverage gaps a buyer can fill, and local demand | Filling gaps in coverage can support higher rates |
| Digital | The age of each screen, and room to convert more boards | Some buyers pay more for digital upside. Older screens may carry a replacement charge |
| Vacancy | How much open time there is, and the current rates | Hillard said a 10-times deal can become 5 or 6 times after a 20% to 30% rate rise |
| Contracts | Whether ad contracts and leases are current | Expired contracts lead to delays or price cuts |
| The economy | Where the cycle stands | Revenue fell about 30% in 2009, and multiples shrink in a recession |
Sources: Billboard Insider, 2025, Billboard Insider, September 2026, OUTFRONT 10-K, Johnsen on easements, Stark Capital Solutions, Marty Williamson. Williamson sells M&A advice, so read his piece as a seller's view.
Does competition change the price?
Yes. Marty Williamson sells M&A advice. He calls competition "the single biggest driver of higher valuations" for sellers. A seller who takes the first offer may not know whether it is the best number. Buyers also differ. Some are nearby operators who want infill. Some are investors with their own return targets. Some pay more for digital upside. Several bidders let a seller see the spread (Billboard Insider).
What about the land under the board?
Land can add value. Jim Johnsen said buyers love easements that "require no active management" and last forever. An easement also spares the buyer real estate tax. Buyers usually prefer an easement to a lease from the seller (Billboard Insider). That is why an easement can sell at a higher multiple than the board itself.
How are digital screens valued?
Screens wear out faster than steel. Max Drachman of Drachman M&A gave an example in 2024. Take 20 digital displays at about $100,000 each, with a 10-year life. A full charge would be $200,000 a year. He said that overstates the cost and can lose a buyer the deal. Jim Johnsen said a buyer can value the plant without that charge. Then the buyer subtracts the present value of the screens' wear (Billboard Insider).
Another operator told Billboard Insider that displays last 10 to 12 years. Its math: $200,000 of displays costs about $20,000 a year in real expense (Billboard Insider). Buyers and sellers argue over this line. Settle it in writing before you sign.
Example: what is Riverbend Outdoor worth?
This is an example, not a real sale. Riverbend Outdoor in Jackson, Tennessee runs 30 static faces. Each face earns $12,480 a year. That is $1,200 per four weeks, 13 periods, sold 80% of the time. We use the same rate and sold time as our owner-income guide. Both are assumptions.
| Line | Assumption | Per year |
|---|---|---|
| Revenue | 30 faces x $12,480 | $374,400 |
| Ground rent | 17% of revenue, Lamar's share | –$63,648 |
| Other direct costs | 16% of revenue: posting, power, repairs, insurance, tax | –$59,904 |
| Imputed sales cost | 15% of revenue, in the 15% to 20% range for small plants | –$56,160 |
| Billboard cash flow | $194,688 |
Now apply the multiples.
| Multiple | Value | Per face |
|---|---|---|
| 8 times | $1,557,504 | $51,917 |
| 10 times | $1,946,880 | $64,896 |
| 12 times | $2,336,256 | $77,875 |
The gap between 8 and 12 times is $778,752. That gap is the whole negotiation. Here is how the factors above could move it.
- Vacancy. A buyer who lifts Riverbend from 80% to 90% sold would earn about $219,000 a year. A buyer paying 10 times today's cash flow would pay about 8.9 times the new cash flow.
- Leases and permits. If many leases end within five years, expect a buyer to bid near 8 times. Clean leases and permits make 12 times easier to reach.
- EBITDA. Say Riverbend's books show $40,000 for sales pay. They also show $60,000 for the owner and the office. Its EBITDA is then $150,848. Ten times that is $1,508,480. That is $438,400 below 10 times billboard cash flow.
The sales pay and owner pay are our assumptions.
How do you check a seller's numbers?
A multiple only works on true cash flow. Ask for these before you accept a number.
- Three years of revenue by face, and the contracts behind them.
- Every ground lease, with end dates, rent and any right of first refusal.
- Every state permit, with its status and renewal date.
- The cost of each line you want to add back, like owner pay.
- The age and warranty of each digital screen.
See how to buy a billboard for the full steps. For what a board earns, see how much billboard owners make. For lease terms, see billboard lease rates. A seller's open time matters too, so see billboard occupancy.
This is a summary, not financial or legal advice. Get an appraisal and a lawyer before you buy or sell.
Questions people ask
How do you value a billboard?
Take its billboard cash flow and multiply by 8 to 12. Billboard cash flow is revenue minus lease costs, direct costs and an imputed sales cost. Then adjust for lease term, permit status, vacancy and any digital screens.
What multiple do billboard companies sell for?
Billboard Insider says a well-kept plant with a decent lease portfolio sells for 10 to 12 times billboard cash flow. Public companies trade higher: by our math, 13.5 to 17 times EBITDA in 2025 and 2026.
What is billboard cash flow?
It is the cash a plant makes after the direct costs of the boards, including lease costs and an imputed sales cost. It leaves out the owner's pay, depreciation and interest. It is not the same as EBITDA.
How much is one billboard face worth?
It depends on the site. Lamar's Verde Outdoor deal came to under $98,400 a face. Lamar's company value divided by its 159,300 displays is about $101,600 a display, by our math.
Do easements raise the value of a billboard?
Buyers pay more for the land. Jim Johnsen of Johnsen Fretty said in 2023 that easements trade 2 to 3 multiple turns higher than outdoor assets. Buyers like that they need no active management.
What lowers the price of a billboard company?
Leases that end soon, unrecorded or unclear leases, unclear permit status, and expired ad contracts. Old digital screens can also cost the seller, because buyers plan for their replacement.
Sources
- 01What's Billboard Cashflow? (June 27, 2024) · Billboard Insider · accessed Oct 12, 2026
- 02Creating Value When Buying Billboards (February 12, 2025) · Billboard Insider · accessed Oct 12, 2026
- 03Should billboard cashflow include a digital billboard replacement reserve? (June 28, 2024) · Billboard Insider · accessed Oct 12, 2026
- 04Out of Home Trading Multiples, September 2026 (September 17, 2026) · Billboard Insider · accessed Oct 12, 2026
- 05Jim Johnsen says billboard easements trade at a higher multiple than billboards (August 24, 2023) · Billboard Insider · accessed Oct 12, 2026
- 0611 Out of Home Due Diligence Hot Buttons (December 7, 2022) · Billboard Insider · accessed Oct 12, 2026
- 07Thinking About Selling Your Billboard Assets? Read This Before Taking a Direct Offer (January 27, 2026) · Billboard Insider · accessed Oct 12, 2026
- 08Reader Feedback on Digital Billboard Conversions (February 17, 2025) · Billboard Insider · accessed Oct 12, 2026
- 09Form 10-K for fiscal year 2025 · Lamar Advertising Company (SEC filing) · accessed Oct 12, 2026
- 10Form 10-K for fiscal year 2025 · OUTFRONT Media (SEC filing) · accessed Oct 12, 2026
- 11Form 10-K for fiscal year 2025 · Clear Channel Outdoor Holdings (SEC filing) · accessed Oct 12, 2026
- 12Clear Channel Outdoor Agrees to be Acquired by Mubadala Capital, in Partnership with TWG Global, for $6.2 Billion (February 9, 2026, 8-K Exhibit 99.1) · Clear Channel Outdoor Holdings (SEC filing) · accessed Oct 12, 2026
- 13Lamar (LAMR) Q4 2025 earnings call transcript (February 20, 2026) · Motley Fool via Yahoo Finance · accessed Oct 12, 2026
- 14Lamar Advertising (LAMR) and OUTFRONT Media (OUT) historical closing prices · Yahoo Finance · accessed Oct 12, 2026
- 152026 Billboard Structures Valuation Guide · North Carolina Department of Revenue · accessed Oct 12, 2026
Billboard operations and sales research
The Gabie team studies how billboard companies price, sell and run their boards. Every number we publish links to its source.
Published Oct 12, 2026 · Updated Oct 12, 2026 · How we check facts