Business Valuation Calculator

Estimate your business value using simple revenue and profit multiples. This multiple-based approach provides a quick ballpark valuation for small to medium-sized businesses.

Revenue

$

Total revenue for the last 12 months

Profit

$

Net profit or EBITDA (earnings before interest, taxes, depreciation, and amortization)

Industry Multiple

Typical valuation multiple for your industry

$300K-$500K
Estimated Valuation Range
Based on selected multiple
Typical for small business
Revenue-Based Valuation $1,500,000
Profit-Based Valuation $300,000
Selected Multiple 3x

What is Business Valuation?

Business valuation is the process of determining the economic value of a business. While professional valuations involve complex analysis, this calculator uses the multiple-based approach, which is a common quick-estimate method for small to medium businesses.

Multiple-Based Valuation

This method values a business as a multiple of its annual revenue or profit (EBITDA). The multiple varies by industry, growth rate, risk level, and other factors:

  • 2x Multiple: Suitable for businesses with low growth, high risk, or heavy asset requirements (e.g., retail, restaurants)
  • 3x Multiple: Average for stable small businesses with moderate growth potential
  • 4x Multiple: For established businesses with recurring revenue, strong brand, loyal customers
  • 5x+ Multiple: High-growth businesses, SaaS companies, or businesses with intellectual property

Revenue vs. Profit-Based Valuation

Revenue-based: More common for high-growth startups or businesses with strong top-line growth but lower profit margins.

Profit-based (EBITDA): More accurate for established businesses with consistent profitability. This is generally the preferred method for mature businesses.

Factors That Affect Business Valuation

  • Industry and market conditions
  • Growth rate and revenue trends
  • Customer concentration and retention
  • Competitive advantages (brand, IP, location)
  • Management team and employees
  • Financial health and profitability
  • Asset quality and liabilities

When to Get a Professional Valuation

This calculator provides a rough estimate. For actual business sale, merger, acquisition, or legal purposes, always obtain a professional business valuation from a qualified appraiser or business valuator.

Important Disclaimer

This calculator provides a simplified estimate for educational and informational purposes only. Results should NOT be considered as a professional business valuation or financial advice. Actual business values vary significantly based on numerous factors including market conditions, industry trends, competitive position, customer base, intellectual property, management quality, and many other considerations.

This tool uses simplified multiples and does not account for assets, liabilities, working capital, normalized earnings, or market comparables. For buying, selling, or legal purposes, always consult with a qualified business valuator, chartered business valuator (CBV), or certified public accountant (CPA).

Calculator last updated: December 2024. Information may be outdated.