What Is My Gas Station Worth?

Gas stations are one of the most commonly sold small businesses. The combination of fuel traffic, convenience store revenue, and often real estate creates a business with multiple income streams and a deep buyer pool.

Typical Valuation Ranges

Most gas stations sell for 3x to 4.5x SDE. The key distinction: fuel revenue drives traffic but generates thin margins, while inside sales (convenience store, food, tobacco, lottery) drive the real profitability.

Factors that push toward the higher end:

• High fuel volume (100,000+ gallons/month)
• Strong inside sales with food service program
• Owned real estate
• Brand affiliation (Shell, Chevron, BP)
• High-traffic location (highway exit, major intersection)
• Car wash on premises

Factors that push toward the lower end:

• Low fuel volume, declining traffic
• Minimal inside sales
• Environmental liabilities (underground storage tanks)
• Short remaining lease
• Aging equipment and facilities
• Fuel-only with no convenience store

Environmental Considerations

Underground storage tanks (USTs) are a critical factor. Buyers and lenders will require environmental assessments. Known contamination or non-compliant tanks can delay or kill a deal. Proactively address environmental compliance — it's non-negotiable.

Key Metrics Buyers Evaluate

Fuel volume and margin: Gallons pumped monthly and cents-per-gallon margin. Volume drives traffic; margin drives fuel profitability.

Inside sales per square foot: Strong c-stores generate $500–$1,000+ per square foot annually.

Food service revenue: Gas stations with food programs (hot food, coffee, fountain drinks) significantly outperform those without.

How to Increase Your Gas Station's Value

1. Invest in your convenience store. Food service, premium beverages, and a clean modern layout drive inside margins.
2. Address environmental compliance. UST upgrades, leak detection, and clean Phase I reports remove deal risk.
3. Add a car wash. Car washes generate recurring revenue with high margins and are valued by buyers.
4. Secure your supply agreement and lease. Long-term fuel supply and property arrangements stabilize the business.

Browse the valuation multiples guide for industry data, or schedule a free call for a confidential valuation.