Business Valuation Calculator: Estimate What Your Business Is Worth
Use this business valuation calculator to estimate what your business is worth with revenue, EBITDA and SDE multiples plus a five-year discounted cash flow. Low, base and high ranges, editable assumptions, no signup.
By Troopus · Updated: October 24, 2026
- 4 methods side by side
- Low / base / high range
- Editable assumptions
- 100% private, no signup
Business valuation calculator: estimate your value
Multiples: low / base / high (times the annual figure)
| Method | Low | Base | High |
|---|---|---|---|
| Revenue multiple | |||
| EBITDA multiple | |||
| SDE multiple |
Discounted cash flow (DCF) assumptions
Educational estimate only. This is not financial, tax, legal or investment advice and not a formal appraisal. Industry multiples shown are illustrative starting points, not sourced market data.
How to value a business
A business is usually valued by applying a multiple to its revenue or earnings, or by discounting its expected future cash flows. For example, a company with $240,000 of EBITDA valued at 5 times earnings is worth about $1.2 million. The right multiple depends on industry, growth, risk and size.
Buyers pay for future cash. Every method is a different way to guess how much cash the business will produce and how risky that cash is. Market methods borrow the answer from comparable sales: if similar companies sold for 4 times SDE, you apply 4 times to yours. Income methods, such as discounted cash flow, build the answer from your own forecast.
Any estimate depends on inputs that are hard to know exactly: normalized earnings, the multiple a real buyer will pay, owner dependence, customer concentration and growth. That is why this calculator returns a range instead of one number, and why you can edit every assumption. The same approach works as a company valuation calculator for a private firm or as a small business valuation calculator for a shop, agency or online store.
What methods does this business valuation calculator use?
The calculator uses four methods: a revenue multiple, an EBITDA multiple, a seller's discretionary earnings (SDE) multiple and a five-year discounted cash flow (DCF). Each returns a low, base and high value. A blended estimate averages the methods you tick, and you can subtract net debt to get equity value.
| Method | Formula |
|---|---|
| Revenue multiple | Annual revenue x multiple |
| EBITDA multiple | Annual EBITDA x multiple |
| SDE multiple | Annual SDE x multiple |
| DCF | Sum of FCFt / (1 + r)t for years 1 to 5, plus terminal value / (1 + r)5 |
| Blended | Average of ticked methods; equity value = blended value minus net debt |
In the DCF, year 0 free cash flow is EBITDA times your cash conversion percentage. It grows at your growth rate for five years. The terminal value is FCF5 x (1 + g) / (r - g), where g is terminal growth and r the discount rate. The low case adds 2 points to the discount rate and the high case subtracts 2 points.
A worked DCF example: EBITDA of $100,000, 60% cash conversion, 10% growth, a 20% discount rate and 3% terminal growth. Free cash flow starts at $60,000 and reaches $96,631 in year 5. The present value of the five years is about $232,830, the present value of the terminal value is about $235,286, and the DCF base value is about $468,116.
What are typical business valuation multiples by industry?
There is no single official table of industry multiples, so the starter values in this calculator are illustrative, not sourced market data. Small businesses often trade at a few times SDE, while software companies can command higher revenue multiples. Replace the defaults with comparable sales from a broker or a deal database.
The preset ranges below are rough starting points chosen to show how the model behaves. They are not drawn from a published survey, and actual multiples move with interest rates, deal size and market conditions.
| Industry preset | Revenue | EBITDA | SDE |
|---|---|---|---|
| SaaS / software | 2x to 7x | 8x to 18x | 3x to 5x |
| E-commerce store | 0.5x to 1.5x | 3x to 6x | 2x to 3.5x |
| Agency / services | 0.5x to 1.5x | 3x to 7x | 2x to 3.5x |
| Content / media site | 1x to 3x | 3x to 5x | 2x to 4x |
| Local / traditional | 0.2x to 0.6x | 2x to 5x | 1.5x to 3x |
Better inputs come from real comparable transactions: sold-business databases, an M&A advisor, or a broker who has closed deals in your niche. Type those multiples into the low, base and high boxes and the whole page updates.
Revenue multiple vs EBITDA vs SDE: which should I use?
Use SDE for owner-operated businesses, EBITDA for companies with a management team, and a revenue multiple mainly for fast-growing businesses with little profit. SDE adds back one owner's salary and perks, EBITDA does not, and revenue ignores costs, so revenue multiples vary the most between companies.
SDE (seller's discretionary earnings) is net profit plus interest, taxes, depreciation, one-time costs and the owner's compensation. It fits a shop, agency or online store where the buyer will take over the owner's job.
EBITDA assumes managers are already paid, so it suits larger businesses. Because a market salary is deducted, EBITDA is lower than SDE for the same company, and EBITDA multiples are higher than SDE multiples.
Revenue multiples are used when profit is small or negative, as with early software companies. They are the least reliable because two businesses with equal revenue can have very different margins. When all three methods are shown side by side, a large gap is a signal to check your margin and add-backs.
For a business with no profit, leave EBITDA and SDE empty. The calculator skips those methods and values the company on revenue only, so treat the result as a rough ceiling and not a bid.
How does a DCF calculator work?
Discounted cash flow (DCF) values a business as the sum of its forecast free cash flows, each divided by (1 + discount rate) raised to the year number, plus a terminal value. A higher discount rate or lower growth lowers the value. Small changes in either can move the result a lot.
The discount rate is the return a buyer demands for taking the risk. Small private companies often use rates well above the rates used for large public ones, which is why the default here is 20%, an editable assumption and not a standard. Terminal growth should stay near long-run inflation or economic growth, which is why the calculator refuses a terminal growth rate within 2 points of the discount rate.
DCF is sensitive. Moving the discount rate from 20% to 18% in the earlier example raises the value from about $468,000 to about $534,000, a 14% change from two points. Use the low and high columns to see that spread before you trust any single figure.
How accurate is a business valuation calculator?
An online valuation is a rough range, not an appraisal, and its accuracy depends on the multiples and earnings you enter. Two reasonable people can pick multiples that differ by 50% or more. Use the output to prepare for a conversation, then confirm with comparable sales or a qualified valuation professional.
The calculator does not know your customer concentration, contracts, owner dependence, legal exposure or the buyer pool in your market. Those factors can move a real price up or down far more than a small input change. The number a business actually sells for is also affected by deal structure, such as earnouts, seller financing and working capital adjustments.
For a sale, loan, tax filing, divorce or shareholder dispute, you will need a formal valuation from a qualified professional. For stock options, the IRS rules on private company stock valuations are a separate formal process. This page is educational and is not financial, tax, legal or investment advice.
Frequently asked questions
How do I use a small business valuation calculator?
Pick a method, apply it, and compare. Multiply annual SDE or EBITDA by a multiple, or discount forecast cash flows. Enter your revenue and earnings above, edit the multiples, and read the low, base and high range. Treat the output as an estimate.
What is a good valuation multiple for a small business?
It varies too much for a single answer. Owner-operated businesses are often priced as a few times SDE, but the range depends on industry, growth and risk. The presets here are illustrative, so check recent comparable sales before relying on any multiple.
How do I use an SDE multiple calculator?
Enter your SDE, which is net profit plus interest, taxes, depreciation, one-time costs and one owner salary and perks, then apply a multiple. With $320,000 of SDE and a 3x multiple the estimate is $960,000. Small business valuations commonly use this method.
How do you value a business with no profit?
Use methods that do not need profit. A revenue multiple is common, and a DCF needs positive forecast cash flows. Buyers also weigh growth, recurring revenue and assets. Enter revenue only here, and treat the result as a rough ceiling rather than an offer.
How does an EBITDA valuation calculator work?
Multiply annual EBITDA by an EBITDA multiple. With $240,000 of EBITDA and a 5x multiple, the enterprise value is $1,200,000. Subtract debt and add cash to get equity value. The multiple should reflect your industry, size and growth.
What is my business worth if I only know revenue?
Multiply annual revenue by a revenue multiple. At $1,000,000 of revenue and a 1.5x multiple the estimate is $1,500,000. Revenue multiples ignore profit, so a low-margin business deserves a much lower multiple than a high-margin one.
Is a company valuation calculator accurate?
It is a rough guide, not a precise figure. The result is only as good as your earnings and multiples, and the calculator cannot see risks like customer concentration. Use it to explore ranges, then confirm with real comparable sales or a professional.
Does this calculator store my numbers?
No. All calculations run in your browser and nothing is sent to a server or stored. There is no signup or email gate. Use the print or copy buttons to keep a summary for yourself.