What is my business worth? (multiples). The Business Valuation Calculator takes annual revenue, annual ebitda (or seller's discretionary earnings), revenue multiple for your industry, ebitda multiple for your industry and returns indicative value (average of the two methods) plus value by revenue multiple, value by ebitda multiple, implied ebitda margin. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
Investment maths is about comparing money at different points in time on a fair basis. Compound rates, discounting and annualised returns let you compare options of different sizes and durations. Use the worked example below to check the maths against your own figures.
How the Business Valuation Calculator works
Small businesses typically sell for 2–5 times owner earnings and 0.5–2 times revenue, higher for recurring revenue and growth. Multiples come from comparable sales in your sector; the average here is only a starting point for negotiation.
Worked example
With the example values (annual revenue of $2,000,000, annual ebitda (or seller's discretionary earnings) of $400,000, revenue multiple for your industry of 1.5, ebitda multiple for your industry of 5), the indicative value (average of the two methods) is $2,500,000.00; value by revenue multiple $3,000,000.00, value by ebitda multiple $2,000,000.00, implied ebitda margin 20%. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
Assumptions and limits: Multiples vary widely by industry, size, growth and risk; this is an indicative range, not an appraisal.
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Frequently Asked Questions
How is indicative value (average of the two methods) calculated?
value = revenue × revenue multiple, or EBITDA × EBITDA multiple.
Which figures do I need?
Annual revenue, annual ebitda (or seller's discretionary earnings), revenue multiple for your industry, ebitda multiple for your industry. Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
Does the calculator account for taxes and fees?
Only where there is an input for them. For a true net return, add fees and taxes to your inputs or use the stock and crypto profit calculators, which include them.
What assumptions does this calculator make?
Multiples vary widely by industry, size, growth and risk; this is an indicative range, not an appraisal.
