Calculators
Business Valuation Calculator
Value a business with SDE, EBITDA and revenue multiples and a single-stage discounted cash flow, side by side.
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- Nothing uploaded
The tool
Enter your numbers below. Results update as you type, and nothing leaves your browser.
Everything you enter stays on your own machine. Nothing is sent to us or to anyone else, which you can confirm in your browser network tab.
What people use it for
- Estimating what a business might sell for
- Preparing for buyer conversations
- Partner buy-outs
- Setting expectations before hiring a broker
About this tool
What the Business Valuation Calculator does
Small and mid-sized businesses are commonly valued by applying a market multiple to seller’s discretionary earnings (SDE), EBITDA or revenue, and cross-checked with a discounted cash flow. This calculator shows each method and the average, giving a range rather than a single figure.
Formula
- SDE value = SDE × multiple
- EBITDA value = EBITDA × multiple
- Revenue value = revenue × multiple
- DCF value = FCF × (1 + g) ÷ (discount rate − g)
Worked example
Using the starting values in the calculator above:
| Input | Value |
|---|---|
| Seller’s discretionary earnings | $250,000 |
| SDE multiple | 2.8 |
| EBITDA | $300,000 |
| EBITDA multiple | 4.5 |
| Annual revenue | $1,500,000 |
| Revenue multiple | 0.8 |
| Free cash flow | $200,000 |
| Long-term growth rate | 3% |
| Discount rate | 15% |
| Result | Value |
|---|---|
| Average of methods | $1,241,667 |
| Low end of range | $700,000 |
| High end of range | $1,716,667 |
| SDE multiple value | $700,000 |
| EBITDA multiple value | $1,350,000 |
| Revenue multiple value | $1,200,000 |
| Discounted cash flow value | $1,716,667 |
How to read the result
SDE multiples are used for owner-operated businesses and EBITDA multiples for businesses with management in place. Use the one buyers in your market will use.
The DCF is very sensitive to the discount and growth rates. A small change in either can move the value a lot, so test a range.
An estimate for discussion, not a formal valuation. Use a qualified valuer for transactions.
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Questions
Questions about this tool
The things clients actually want to know — costs, timelines, ownership and what happens after launch.
Most often as a multiple of seller's discretionary earnings or EBITDA, checked against comparable sales and cash flow methods.
Seller's discretionary earnings: pre-tax profit plus the owner's salary and benefits, interest, depreciation and one-off expenses.
From sales of comparable businesses, available from brokers and transaction databases. They vary by industry, size and risk.
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