SC
Business Valuation Calculator
Find out what your business is worth in seconds. Choose a valuation method, enter your numbers, and get an instant estimate of your company value — free, no sign-up needed.

Enter Your Business Details

Earnings before interest, taxes, depreciation & amortization
Total gross revenue / sales for the year
Net profit + owner salary + add-backs + one-time costs
Equipment, inventory, receivables, real estate, intangibles
Loans, debts, accounts payable, obligations
Added on top of net asset value to reflect goodwill
Operating cash flow minus capital expenditures
Realistic year-over-year cash flow growth rate
Optional — converts enterprise value to equity value
Try an example calculation

Your Business Valuation

Choose a valuation method, enter your financial details, and click Estimate Business Value to see results.

Estimated Business Value (EBITDA Method)
$0
enterprise value
Low Mid High
Indicative valuation range based on method and multiples
Valuation Breakdown
Annual EBITDA —
Multiple Applied —
Enterprise Value —
Low End Estimate —
High End Estimate —

Value Composition

Valuation by Method Comparison

How Business Valuation Works

A business valuation is an estimate of what a company is worth in the open market. Buyers and sellers use it to agree on a fair price. Lenders use it for loan decisions. Owners use it for retirement planning and exit strategies.

There is no single right answer. The true value of a business is whatever a ready buyer will pay and a willing seller will accept. But financial methods give you a solid starting point based on real numbers.

The most common methods are earnings-based (EBITDA or SDE multiples), revenue-based, asset-based, and discounted cash flow. Each method works better in different situations, which is why many valuations use two or more methods together for a range. Knowing your contribution margin helps you understand how much of each sale actually flows through to profit — a key input for any earnings-based valuation.

Which Valuation Method Should You Use?

  • EBITDA Multiple — Best for mid-size businesses with clear, consistent profit. Common in professional services, manufacturing, and distribution.
  • Revenue Multiple — Best for high-growth or early-stage companies where profit is low but revenue is strong. Common in SaaS and tech.
  • SDE Multiple — Best for owner-operated small businesses. Captures all owner benefit in one number. Useful for freelancers and professionals who want to factor in their consulting rate as part of total owner earnings.
  • Asset-Based — Best for asset-heavy businesses like real estate, equipment rentals, or companies being liquidated.
  • DCF — Best for businesses with stable, predictable cash flows. Gives the most detailed long-term picture.

Industry Valuation Multiples Reference

Industry SDE Multiple EBITDA Multiple Revenue Multiple
Retail1.5–2.5×2–3×0.2–0.5×
Restaurant / Food1.5–2×2–3×0.25–0.5×
Landscaping / Trade2–3×2.5–4×0.3–0.6×
Professional Services2–3×3–5×0.5–1.5×
E-Commerce2.5–4×3–5×0.5–1.5×
Manufacturing2–3.5×3–5×0.5–1×
Healthcare / Medical2.5–4×4–6×0.75–2×
SaaS / SoftwareN/A5–15×3–12×
Technology Services3–5×5–8×1–3×

Ranges vary based on profitability, growth rate, market conditions, and deal size. Use as a guide only.

What Increases Business Value

Several factors push your business multiple up — meaning buyers will pay more per dollar of earnings:

  • Recurring revenue — Subscriptions, retainers, and repeat contracts reduce risk for buyers. A strong conversion rate from leads to paying customers signals a healthy, scalable sales process that buyers reward with higher multiples.
  • Strong growth trend — A business growing 20%+ per year commands higher multiples than one that is flat.
  • Low owner dependence — If the business runs without you, it is worth more. Document systems and processes.
  • Diversified customers — No single customer should be more than 15–20% of revenue.
  • Clean books — Clear, well-maintained financial records build buyer confidence. Keeping every business expense properly documented shows buyers the numbers are reliable.
  • Strong team — Experienced employees who will stay after the sale increase value.
  • Transferable contracts — Leases, supplier agreements, and customer contracts that transfer to the new owner.
Quick Settings
Fine-tune calculator behaviour without opening the full settings panel
Valuation Adjustments
EBITDA Multiple RangeOverride EBITDA min–max bounds
2×
Revenue Multiple CapMaximum revenue multiple shown
10×
SDE Multiple DefaultStarting SDE multiple value
2×
Goodwill PremiumDefault goodwill % for asset-based
20%
Valuation Low-End Haircut% below midpoint for low estimate
20%
Valuation High-End Premium% above midpoint for high estimate
25%
DCF Parameters
Default Discount RateStarting % for DCF analysis
12%
Projection YearsDefault DCF horizon (years)
5 yr
Terminal Value MultipleExit multiple applied to final year CF
3×
Default Growth RatePre-fill annual growth % for DCF
8%
Display & Formatting
Show Charts After CalcAuto-display bar & pie charts
Show Valuation Range BarInline low / mid / high bar
Show Formula BoxDisplay applied formula below results
Show Debt Adjustment RowEnterprise → equity value row
Compact Result ModeHides secondary breakdown rows
Decimal PlacesPrecision for result values
0
Number AbbreviationShow K / M / B suffixes in results
Input Behaviour
Auto-Calculate on ChangeRecalculate whenever any input changes
Comma-Format InputsShow 1,000 separators while typing
Sticky Debt FieldRemember last debt value on reset
Input Step SizeIncrement for ↑↓ arrow keys ($)
$1k
Advanced
Mid-Market MultiplesUnlock 4.5×–8× EBITDA options
Tech / SaaS MultiplesUnlock 10×–20× EBITDA options
High-Growth Rev MultiplesUnlock 3×–12× revenue options
Premium SDE MultiplesUnlock 4×–5× SDE options
Auto Currency DetectionSet currency based on your location

Business Value by EBITDA Amount & Multiple

Estimated enterprise value based on annual EBITDA. Highlighted cells show values at 3× multiple.

Annual EBITDA 2× Multiple 3× Multiple 4× Multiple 5× Multiple 6× Multiple 8× Multiple

Formula: EBITDA × Multiple. Currency shown as $. Actual multiples depend on industry, growth, and risk.

Business Value by Revenue Amount & Multiple

Estimated value using annual revenue and common revenue-based multiples.

Annual Revenue 0.5× Multiple 1× Multiple 2× Multiple 3× Multiple 5× Multiple 10× Multiple

Revenue multiples are common for SaaS, tech, and high-growth businesses. Revenue alone does not account for profitability — use alongside EBITDA method.

Small Business Value by SDE & Multiple

Seller's Discretionary Earnings (SDE) is the standard metric for small business sales under $5M.

Annual SDE 1.5× Multiple 2× Multiple 2.5× Multiple 3× Multiple 3.5× Multiple 4× Multiple

SDE = Net profit + owner salary + owner perks + one-time add-backs. Most small businesses sell for 2×–3.5× SDE.

Valuation Benchmarks by Industry Type

Common valuation ranges and key value drivers across major business categories.

Industry Typical Multiple Range Best Method Key Value Driver Risk Level
🛒 Retail (physical)1.5–2.5× SDESDELocation & inventoryMedium-High
🍕 Restaurant / Food1.5–2× SDESDE / RevenueLease terms & trafficHigh
🔧 Trade / Construction2–3× SDESDE / EBITDABacklog & repeat contractsMedium
🏥 Healthcare / Dental2.5–4× EBITDAEBITDAPatient base & recurring visitsLow-Medium
⚖️ Legal / Accounting1–2× RevenueRevenueRecurring retainer clientsMedium
🏭 Manufacturing3–5× EBITDAEBITDA / AssetEquipment & proprietary processMedium
🛒 E-Commerce2.5–4× SDESDE / RevenueBrand, traffic & marginMedium
💻 SaaS / Software5–15× RevenueRevenueMRR, churn, growth rateLow-Medium
📱 App / Digital Product2–5× RevenueRevenueDownloads, DAU, monetizationMedium
🏢 Commercial Real EstateCap Rate BasedAsset / DCFNOI, occupancy, lease lengthLow
🚗 Auto Dealership0.1–0.2× RevenueRevenue / AssetFranchise agreement & floor planMedium
🌱 Franchises2–3× SDESDEBrand strength & territoryLow-Medium

Ranges are indicative only. Final multiples depend on deal size, market timing, buyer type, and business-specific factors. Verify with a qualified advisor.

Discount Rate Selection Guide (for DCF Valuation)

The discount rate reflects risk — the higher the risk, the higher the rate, and the lower the present value.

Discount Rate Risk Profile Typical Business Type Present Value Factor (5 yr)
6–8%Very LowEstablished brand, dominant market position, predictable revenue~0.68–0.74
10%LowStable business, 5+ years history, strong margins~0.62
12%ModerateTypical small-to-mid business, moderate competition~0.57
15%Medium-HighNewer business, owner-dependent, some customer concentration~0.50
20%HighEarly stage, limited track record, high churn or competition~0.40
25%Very HighPre-revenue startup, speculative model, no clear moat~0.33
30%+SpeculativeAngel/VC stage, concept-only, high execution risk~0.27

The present value factor shows the worth of $1 received in year 5 at each discount rate. Lower risk = higher present value of future cash flows.

DCF Valuation by Cash Flow & Growth Rate (at 12% Discount)

5-year present value of cash flows at a 12% discount rate. Includes a 3× terminal value multiple.

Annual Cash Flow 0% Growth 5% Growth 10% Growth 15% Growth 20% Growth

Formula: Sum of (CF × (1+g)^n / (1+r)^n) for n=1 to 5, plus terminal value = year 5 CF × 3. Currency: $.