Free pharmacy valuation calculator
How much is your pharmacy worth?
Answer six questions and get an instant enterprise value range built on calibrated Canadian multiples: the same engine we use in professional engagements, tuned per province. Free, no contact details needed, and honest about what it can and cannot see.
Before you start
This is not a scripts-times-35 calculator
Some tools multiply your daily prescriptions by a magic number and call it a valuation. This is not that. This is the same calibrated engine we use in professional engagements, built from real Canadian pharmacy transactions and reviewed against every deal we close.
In sixty seconds, it weighs:
- ◆Your province: all 13 provinces and territories carry their own calibrated multiple ranges
- ◆Your earnings base: normalized EBITDA logic, not raw revenue, with size banding
- ◆Your lease security: one of the strongest value drivers banks and buyers price
- ◆Your community and setting: urban, suburban, rural, or long-term care and specialty
The full methodology goes further (owner compensation and add-backs, payer concentration, rebate dependence, script trends, competition, and what a bank would actually lend), which is why the free estimate is a range, and the full assessment is a number you can plan around.
The more precise your figures, the more real your range. Estimates in, estimates out. Your accountant's statements in, a range you can trust out. The figures you type are never sent to us or to anyone else: the calculation runs right here in your browser. We record only your province and a size bracket of the result, for usage statistics and advertising measurement.
Free. Instant. No contact details needed for the estimate.
Running your pharmacy through the model
- Applying provincial multiple range
- Normalizing your earnings base
- Banding for size and buyer pool
- Pricing lease and setting risk
- Building your value range
Estimated enterprise value range
This range could move by
Your estimate uses safe defaults for the factors the quick version cannot see:
- Owner compensation and add-backs (often adds $50,000 to $150,000 to normalized earnings)
- Payer concentration, rebate income, and script trend
- Lease terms, clinic proximity, and local competition
- What a bank would actually lend against your earnings
The full assessment recalculates your range with your real numbers and shows the lender's view: the maximum financing a bank would support and the equity a buyer would need.
Get my full assessmentFree report by email. For deal-ready numbers, ask about a professional valuation engagement.
This indicative estimate is generated from limited inputs and market parameters current as of . It is a professional opinion tool, not a certified business valuation, financial advice, or an offer. Actual transaction values depend on due diligence, deal structure, and market conditions.
The valuation ladder
Three levels of certainty, one methodology
Level 1 · Free · Instant
Quick estimate
Six inputs, an immediate range with provincial context. Safe defaults stand in for what it cannot see. No contact details needed.
Start the quick estimate →Level 2 · Free · Instant plus lender view
Full assessment
Your real owner compensation, add-backs, lease, payer mix, and trends. A tighter range plus the lender's view: what a bank would finance and the equity a buyer needs. Calculated on the page, with an optional report by email.
Start the full assessment →Level 3 · Scoped engagement
Professional valuation
A documented, defensible valuation for sale planning, bank financing, or partner discussions. Normalized EBITDA workings, comparable context, and a report buyers take seriously. Quoted per engagement based on complexity.
Ask about a professional valuation →Pharmacy valuation multiples in Canada, by province
Most Canadian community pharmacies sell for 4x to 6x normalized EBITDA, plus inventory at cost. The provincial baselines PharmacyBroker.ca starts from run 4.5x to 7x, with most provinces centred between 5.25x and 6.25x, before adjustments for the size of the earnings base and for risk.The table gives the baseline for each province. It is the same set of parameters the calculator on this page runs on, and the one place on this site these figures are published. They are our working ranges from Canadian pharmacy transactions, not published market statistics. Parameters last reviewed May 4, 2026.
| Province or territory | Low | Mid | High |
|---|---|---|---|
| Ontario | 5x | 6x | 6.5x |
| British Columbia | 5x | 5.75x | 6.5x |
| Alberta | 5.5x | 6.25x | 7x |
| Quebec | 5x | 5.75x | 6.25x |
| Saskatchewan | 4.75x | 5.5x | 6x |
| Manitoba | 4.75x | 5.5x | 6x |
| Nova Scotia | 4.75x | 5.5x | 6x |
| New Brunswick | 4.5x | 5.25x | 5.75x |
| Prince Edward Island | 4.5x | 5.25x | 5.75x |
| Newfoundland and Labrador | 4.5x | 5.25x | 5.75x |
| Yukon | 4.5x | 5.25x | 5.75x |
| Northwest Territories | 4.5x | 5.25x | 5.75x |
| Nunavut | 4.5x | 5.25x | 5.75x |
How the baseline moves
Size of the earnings base. The calculator positions a pharmacy within its provincial range by normalized EBITDA, and shifts the multiple for the smallest and largest stores:
- Very small: normalized EBITDA under $150,000 (-0.5x)
- Small: normalized EBITDA from $150,000 to $300,000
- Mid: normalized EBITDA from $300,000 to $500,000
- Mid-large: normalized EBITDA from $500,000 to $1,000,000
- Large: normalized EBITDA from $1,000,000 to $2,000,000
- Strategic: normalized EBITDA from $2,000,000 and above (+0.5x)
Risk factors. Lease security, owner occupied premises, proximity to a medical clinic, local competition, payer concentration, rebate dependence, whether the owner is the only pharmacist, and the prescription trend each move the multiple up or down by a quarter to three quarters of a turn. The combined adjustment is capped at +1x and -2x.
Inventory. The multiple values the operating business (equipment, fixtures, leaseholds, patient files and goodwill). Inventory is bought separately at cost, counted at closing.
Long term care and specialty pharmacies are valued on the same method but with contract quality and per bed economics driving the result; see the long term care guide.
Why the provinces differ
- Ontario
- Ontario combines high prescription volume with the rebate ban, which compresses margins meaningfully. Premium urban pharmacies still command strong multiples; rebate-dependent operations face significant lender and buyer haircuts.
- British Columbia
- British Columbia operates under an $11 dispensing fee cap and an income-based deductible system that compresses retail pharmacy margins relative to other provinces. Buyer multiples reflect this cap, with the high end reserved for premium urban locations with stable scripts and secure long-term lease tenure.
- Alberta
- Alberta supports stronger pharmacy economics through higher dispensing fees and active clinical service billing (injections, MTM, chronic disease management). Larger urban operations regularly transact at the high end of the provincial range.
- Quebec
- Quebec valuations reflect a structural workforce shortage that pressures both wages and DSCR. Larger pharmacies with stable lease and scripts still achieve attractive multiples; smaller operations face workforce-driven discounts.
- Saskatchewan
- Saskatchewan is a smaller buyer pool, but rural pharmacies often function as essential health infrastructure with stable scripts. Multiples are tighter than central Canada but stable for well-tenured operations.
- Manitoba
- Manitoba's smaller market and limited buyer pool keep multiples conservative. Long-tenured pharmacies with stable scripts can still achieve mid-range pricing.
- Nova Scotia
- Nova Scotia's aging demographics support stable scripts and lender confidence. Multiples are conservative but reliable for well-run pharmacies.
- New Brunswick
- New Brunswick is a smaller market with a limited buyer pool. Steady-script pharmacies in healthy locations transact reliably at the mid of the range.
- Prince Edward Island
- Prince Edward Island is a very small market with a limited buyer pool. Multiples are tight and lender appetite is conservative.
- Newfoundland and Labrador
- Newfoundland and Labrador has rural concentration and a smaller market. Pharmacies in stable communities transact dependably; remote locations face wider discounts.
- Yukon
- Yukon is a remote market with a limited buyer pool and elevated operating costs. Multiples are conservative and bank financing is more restrictive.
- Northwest Territories
- Northwest Territories combines remote operations with a very small buyer pool. Multiples and lender capacity reflect this.
- Nunavut
- Nunavut's remote, high-cost operating environment and very small buyer pool drive conservative multiples and tight lender appetite.
How the calculator works, in plain terms
Canadian pharmacies are valued as a multiple of normalized EBITDA, plus inventory. The calculator starts from your reported earnings, applies a provincial baseline multiple (each province trades differently, and our parameters carry a calibrated range for all 13 provinces and territories), adjusts for the size of your earnings base, then applies risk factors: lease security, community type, and the operational signals the quick version estimates with defaults.
The full methodology also weighs owner compensation against a market manager salary, personal and one-time expenses, payer concentration, rebate dependence, script trends, competition, and clinic proximity, and then runs the lender math: banks typically require a 1.25x debt service coverage ratio, which caps what any buyer can borrow against your earnings, and therefore what most buyers can pay. If you are seriously weighing a sale, that second layer is where your real number lives, and it is exactly what the full assessment calculates.
If you want the deeper theory, our guides to pharmacy valuation in Canada and EBITDA normalization walk through the same methodology step by step, with worked examples. Browsing what is on the market right now also helps calibrate expectations: see the current pharmacy for sale listings.