Business Valuation Calculator - Estimate Company Worth

About this tool

Our Business Valuation Calculator is the most comprehensive free tool for estimating the value of small to mid-sized businesses. Business valuation is both an art and a science, combining financial metrics with industry knowledge and market conditions. Whether you're selling your business, seeking investors, buying a competitor, or planning estate/succession matters, understanding your business's worth is essential. This calculator implements three widely-used valuation methods: the Earnings Multiplier (based on EBITDA or SDE), the Revenue Multiplier (based on gross sales), and the Asset-Based approach (net assets), giving you a range of values to consider.

The Earnings Multiplier method is most common for profitable businesses with consistent cash flow. It multiplies Seller's Discretionary Earnings (SDE) or EBITDA by an industry-specific multiple, typically ranging from 2x to 10x depending on business type, growth rate, and risk factors. Main Street businesses (under $5M revenue) often sell for 2-4x SDE, while larger, high-growth companies command 5-10x EBITDA multiples. SDE includes owner salary and benefits, making it appropriate for small businesses where the owner is heavily involved. EBITDA (Earnings Before Interest, Taxes, Depreciation, Amortization) is used for larger businesses with professional management.

The Revenue Multiplier method works well for businesses in growth mode or those where profit margins are inconsistent but revenue is strong. It multiplies annual gross revenue by an industry multiple, typically 0.5x to 3x. Service businesses often sell for 0.5-1.5x revenue, while SaaS and subscription businesses can command 3-10x revenue. This method is useful when earnings are depressed due to reinvestment or when comparing businesses with different profit structures. The Asset-Based method calculates net tangible assets (assets minus liabilities), useful for asset-heavy businesses, liquidation scenarios, or as a valuation floor.

Our calculator provides valuations using all applicable methods, helping you understand the range of possible values. No single method is perfect - buyers and sellers typically negotiate within a range defined by multiple approaches. The tool accounts for key factors like revenue growth, profit margins, industry trends, customer concentration, and market conditions. It's completely free, requires no registration, and works entirely in your browser. Perfect for business owners, buyers, investors, accountants, and M&A advisors needing quick valuation estimates.

Usage examples

Valuation: $375K (Earnings), $500K (Revenue 1x), Range: $350K-$400K

Valuation: $600K (Earnings), $480K (Revenue 0.4x), Range: $550K-$650K

Valuation: $4M (Revenue-based), Growth stage, negative earnings

Valuation: $2.4M (Earnings), $1.5M (Revenue 0.5x), $1M (Assets)

How to use

1. Select your valuation method (Earnings Multiplier, Revenue Multiplier, or Asset-Based)
2. Enter annual revenue and profit figures
3. Input industry-specific multiplier (typically 1-5x for revenue, 3-10x for earnings)
4. Add total business assets and liabilities if using asset-based method
5. Specify any adjustments for market conditions or special factors
6. View comprehensive valuation with multiple method comparisons

Benefits

• Multiple valuation methods for comprehensive analysis
• Industry-specific multiplier recommendations
• SDE and EBITDA calculations included
• Asset-based valuation for tangible businesses
• Revenue multiplier for growth companies
• Valuation range with high and low estimates
• Instant calculations as you input data
• Comparison of all methods side-by-side
• Mobile-friendly for meetings and negotiations
• No registration required - completely free
• Based on standard business valuation practices
• Helpful for buyers, sellers, and investors

FAQs