Business Valuation Calculator
Estimate your business value using multiple valuation methods
Revenue Multiple (3x)
$3,000,000
EBITDA Multiple (5x)
$1,000,000
Asset-Based Value
$300,000
DCF Value
$2,108,951
$1,602,238
Average of all methods
Range: $300,000 - $3,000,000
Business valuation is the process of determining the economic value of a business or company. Valuations are used for sale transactions, investment analysis, partner buyouts, estate planning, and strategic decision-making. Multiple methodologies exist, each appropriate for different situations.
Formula:
Value = EBITDA × Industry MultipleCommon methods include discounted cash flow (DCF), comparable transactions, and multiple of earnings (EBITDA, SDE).
- 1
Enter your annual revenue and profit figures
- 2
Input EBITDA or seller's discretionary earnings (SDE)
- 3
Select your industry for appropriate multiples
- 4
Add business assets and liabilities
- 5
View valuation ranges based on different methodologies
- 6
Compare to industry benchmarks and recent transactions
- Essential for selling or buying a business
- Helps negotiate fair prices in M&A transactions
- Required for estate planning and tax purposes
- Guides strategic decisions on growth vs exit
- Necessary for bringing in investors or partners
- Preparing to sell your business
- Evaluating acquisition targets
- Bringing in investors or partners
- Estate and succession planning
- Divorce proceedings or litigation
- Setting ESOP share prices
- •Clean financials and organized documentation increase value by 10-20%
- •Reducing owner dependence increases transferability and value
- •Recurring revenue is valued more highly than one-time sales
- •Get multiple opinions - hire a professional valuator for major transactions
EBITDA Calculator
Calculate EBITDA and apply industry-specific multiples
Try Calculator →ROI Calculator
Calculate investment returns
Try Calculator →M&A Deal Analyzer
Analyze acquisition deals
Try Calculator →Cash Flow Calculator
Project business cash flows
Try Calculator →Break Even Calculator
Analyze business profitability
Try Calculator →Have questions about using this calculator? Check out our financial guides or contact us for help.
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Frequently Asked Questions
What is the most accurate business valuation method?
No single method is universally accurate. DCF is theoretically sound for profitable businesses, EBITDA multiples are industry-standard for comparisons, and asset-based works well for asset-heavy businesses. Use multiple methods and consider the average.
What is a typical EBITDA multiple for small businesses?
Small businesses typically sell for 2-4x EBITDA. Mid-sized businesses may command 4-6x, while larger or high-growth companies can achieve 8x or higher. Industry, growth rate, and market conditions all affect multiples.
How does growth rate affect business valuation?
Higher growth rates significantly increase DCF valuations as they project larger future cash flows. A business growing at 20% annually is worth substantially more than one growing at 5%, all else being equal.
What is the discount rate in DCF valuation?
The discount rate represents the required return on investment, accounting for risk. Higher-risk businesses use higher rates (15-25%), while stable businesses use lower rates (8-12%). It converts future cash flows to present value.
When should I use asset-based valuation?
Asset-based valuation works best for asset-heavy businesses (real estate, manufacturing), holding companies, or businesses being liquidated. It often undervalues service businesses where value lies in intangibles like customer relationships.