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🏛️ Business Valuation Calculator

Get a quick ballpark valuation using the two most common shortcut methods — a revenue multiple and an earnings (EBITDA) multiple.

Valuation Inputs
$
$
$
$
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Ready to Calculate

Enter your financials, then click Calculate to see results.

Valuation Results
Revenue-Based Valuation
—
enterprise value
Earnings-Based Valuation
—
enterprise value
Blended Estimate
—
average of both methods
Equity Value
—
blended − net debt
Method Comparison
MethodMetricMultipleValuation
Typical Multiple Ranges by Sector (illustrative only)
SectorRevenue MultipleEBITDA Multiple
SaaS4x - 8x10x - 20x
Retail / E-commerce0.5x - 1.5x3x - 5x
Professional Services0.8x - 1.5x3x - 6x
Manufacturing0.5x - 1x4x - 6x

These ranges are illustrative only — actual multiples depend heavily on growth rate, margins, customer concentration, and prevailing market conditions.

Guide

About the Business Valuation Calculator

The Business Valuation Calculator provides a fast ballpark estimate of what a business might be worth, using the two most common shortcut methods practitioners reach for first: a revenue multiple and an EBITDA (earnings) multiple. It's built for founders exploring an exit, buyers sizing up a target, or anyone who wants a rough valuation range before commissioning a formal appraisal.

How It Works

You enter annual revenue with a revenue multiple, and annual EBITDA with an EBITDA multiple. The calculator multiplies each pair to produce two independent enterprise value estimates, averages them into a blended estimate, and then subtracts net debt (total debt minus cash on hand) to arrive at an estimated equity value — the amount that would theoretically go to owners after debts are settled.

Why It Matters

Multiple-based valuation is the fastest way to sanity-check whether an asking price, offer, or internal expectation is in the right neighborhood before investing time in a full valuation. It's also how many buyers and brokers frame initial conversations, so understanding how your revenue and EBITDA translate into typical multiples helps you negotiate from an informed position.

Tips for Accurate Results

  • Use trailing twelve-month (TTM) revenue and EBITDA figures, not a single strong or weak month, for a representative estimate.
  • Normalize EBITDA for one-time or owner-specific expenses (add-backs) — unadjusted EBITDA can understate what a buyer would actually pay for.
  • Choose multiples appropriate to your specific sub-industry and growth profile rather than a broad sector average — the range within any sector can be wide.
  • Treat the blended estimate as a starting point for discussion, not a final number — a certified valuation professional accounts for far more nuance.

This is an estimate for planning purposes — consult a licensed business valuation professional or M&A advisor before relying on any figure for a transaction.

Formula

How Business Valuation is Calculated

Multiple-based valuation multiplies a financial metric by a market-typical multiple.

Valuation Formulas
Revenue-Based Value = Annual Revenue × Revenue Multiple
Earnings-Based Value = Annual EBITDA × EBITDA Multiple
Equity Value = Average(Revenue Value, Earnings Value) − (Total Debt − Cash)
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Revenue Multiples

Best for early-stage or fast-growing companies without stable profits yet — a top-line proxy for future earning power.

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EBITDA Multiples

Best once a business has consistent, positive earnings — captures profitability and cost structure, not just size.

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Net Debt Adjustment

Enterprise value belongs to both debt and equity holders — subtracting net debt converts it into the value available to owners.

FAQ

Frequently Asked Questions

Common questions about business valuation

How is a small business valued?
Small businesses are commonly valued using quick multiple-based shortcuts — applying a revenue multiple or an EBITDA (earnings) multiple typical for the industry — as well as more rigorous methods like discounted cash flow analysis or comparable transaction analysis. Multiple-based methods are fast and useful for a ballpark figure, but a full valuation typically blends several approaches.
Revenue multiple vs EBITDA multiple — when should I use which?
Revenue multiples are useful for early-stage or fast-growing companies that aren't yet profitable, since there's no earnings figure to multiply. EBITDA multiples are preferred once a business has stable, positive earnings, since they account for profitability and cost structure rather than just top-line size.
What drives valuation multiples up or down?
Growth rate, profit margins, customer concentration, recurring vs one-time revenue, competitive moat, management team depth, and overall market/sector sentiment all move multiples. A high-growth, high-margin, recurring-revenue business commands a materially higher multiple than a slow-growth, low-margin, one-off-sale business in the same industry.
Is this a substitute for a professional valuation?
No. This calculator gives a quick, illustrative ballpark using simplified multiples. Actual business valuations for a sale, acquisition, fundraising round, or legal purpose require a certified valuation professional who considers financial statements in depth, market comparables, and qualitative factors this tool doesn't capture.
How is the blended valuation estimate calculated?
The calculator computes a revenue-based value (revenue × revenue multiple) and an earnings-based value (EBITDA × EBITDA multiple) independently, then averages the two into a single blended estimate. Averaging the two methods smooths out the weaknesses of relying on just one metric.
What is net debt and why does it get subtracted?
Net debt is total debt minus cash on hand. It's subtracted from the blended valuation because enterprise value belongs to both lenders and owners — subtracting what's owed, and adding back cash on hand, converts enterprise value into equity value, the portion that would actually go to owners in a sale.
What's the difference between enterprise value and equity value?
Enterprise value — the revenue-based, earnings-based, and blended figures — represents the value of the whole business regardless of how it's financed. Equity value is what's left for owners after subtracting net debt, making it the number most relevant to a seller pocketing proceeds from a sale.
Are the sector multiple ranges shown accurate for my specific business?
No — the sector ranges (SaaS, retail/e-commerce, professional services, manufacturing) shown in the Typical Multiple Ranges table are illustrative only. Actual multiples for your business depend heavily on growth rate, margins, customer concentration, and current market conditions, so use them as a rough starting point, not a precise benchmark.
Can I use this calculator for a pre-revenue or early-stage startup?
The revenue-multiple side works even with $0 EBITDA, since early-stage companies often aren't profitable yet — you can effectively ignore the earnings-based result. For a true pre-revenue startup with little or no revenue either, this multiple-based approach isn't a good fit; consider a different startup valuation method instead.
Why do SaaS multiples look so much higher than retail multiples?
SaaS businesses typically have recurring subscription revenue, high gross margins, and strong growth, which investors reward with higher multiples. Retail and e-commerce businesses usually have thinner margins, more one-time transactional revenue, and more competition, which compresses their multiples relative to SaaS.
Can I export my valuation results?
Yes. Click "Export Result" to download a plain-text summary of your revenue-based, earnings-based, blended, and equity valuation figures.

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