What are my billboards worth?

Borrowers are constantly asking me what their signs are worth.  My rule of thumb is that billboards are worth 4-6 times annualized gross revenues.  The transactions which I have financed over the last 10 years have occurred at multiples ranging from 3 to 6 times gross revenue with a median of 4.8 times gross revenue.

Your your billboards will sell on the high end of the range if:

• They are at least 14 by 48.
• The economy is strong.
• They have 20 year leases with lease costs less than 20% of revenues.
• They are in good condition.

Your billboards will sell on the low end of the range if:

• They are 8 sheet or 12 by 24.
• The economy is in recession.
• You have short term leases with lease costs in excess of 20% of revenue.
• They are in poor condition.
• They are unoccupied.