Business Valuation Calculator
Estimate business value using revenue multiples, earnings multiples, and asset-based methods.
Did this tool work for you?
How to use this calculator
Revenue multiples are applied to annual revenue based on industry norms. EBITDA multiples are applied to earnings before interest, tax, depreciation, and amortisation. The midpoint averages the low and high ends of both methods.
- 1
Enter your annual revenue, EBITDA, and net asset book value.
- 2
Select your industry to apply the appropriate revenue and EBITDA multiples.
- 3
Read the valuation ranges from both methods and the blended midpoint estimate.
Frequently asked questions
Which valuation method is most accurate?
No single method is definitive. Revenue multiples are useful for high-growth businesses with low profits. EBITDA multiples suit stable, profitable businesses. Asset-based valuation is most relevant for asset-heavy industries like real estate or manufacturing. Using multiple methods and comparing the results gives the best estimate.
Why do SaaS businesses command higher multiples?
SaaS businesses have recurring subscription revenue, high gross margins, and strong scalability. These characteristics reduce risk for buyers and justify premium multiples compared to service businesses with project-based revenue.
Is this a formal business valuation?
No — this tool provides a rules-of-thumb estimate for planning purposes. For legal, tax, or transaction purposes such as a sale or fundraise, engage a certified business valuator or investment bank.
Business Valuation Calculator — Revenue & EBITDA Multiples
How to use the valuation
Use this valuation to business value using revenue multiples, earnings multiples, and asset-based methods. Enter your values above and get your result in seconds. The tool is free, works on all devices, and keeps your data private — nothing is stored or shared.
How the valuation works
The business valuation calculator uses standard formulas used in business analysis, financial modelling, and commercial decisions. Enter your inputs, and the tool calculates the result instantly in your browser. No server-side processing means your data stays on your device. Results update in real time as you change inputs.
How business valuations work
Business valuation is not an exact science — it depends on profitability, growth rate, recurring revenue, customer concentration, industry trends, and the strategic value to a specific buyer. Market-based multiples provide a useful starting point by anchoring your estimate to what similar businesses actually sell for in the market.
Preparing your business for a higher valuation
Businesses command higher multiples when they have recurring revenue, documented processes, diversified customer bases, strong gross margins, and clean financial records. Improving EBITDA margins and reducing owner dependency are two of the highest-impact actions founders can take before seeking investment or an exit.
Business valuation: how it works
Business calculation tools cut through the complexity of commercial metrics, giving decision-makers fast, reliable figures. This tool is used by entrepreneurs, analysts, and students to model real-world business scenarios.
Who uses this tool?
Startup founders, business students, consultants, and finance teams use it to run quick commercial calculations and validate assumptions. It replaces ad hoc spreadsheets for common business metrics.
Learn more from an authoritative source:
InvestopediaProfit & Loss Calculator
Calculate net profit or loss, profit margin, and break-even from revenue and cost data.
Employee Cost Calculator
Calculate the true total cost of an employee including salary, benefits, and employer overhead.
Cash Flow Calculator
Calculate operating, investing, and financing cash flows to assess business liquidity.
Inventory Turnover Calculator
Calculate inventory turnover ratio, days sales of inventory (DSI), and assess efficiency.
Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →