How much is my business worth? Get a fair market value estimate using revenue multiples, EBITDA, seller's discretionary earnings, and discounted cash flow analysis with industry benchmark comparisons.
A SaaS business with $500,000 annual recurring revenue, growing 30% YoY, with 80% gross margins. Industry standard SaaS multiples are 5–10x ARR.
Revenue Multiple Value: $2,500,000 – $5,000,000
With $200,000 EBITDA and 6–10x EBITDA multiple, the business is worth $1,200,000 – $2,000,000 on an EBITDA basis. The blended valuation suggests a fair market value of approximately $2,000,000 – $3,500,000 depending on the buyer's strategic interest.
A well-established restaurant with $400,000 in seller's discretionary earnings. Industry SDE multiples for restaurants typically range from 1.5–3.0x.
SDE Multiple Value: $600,000 – $1,200,000
With $1.2M in annual revenue and 0.5–1.5x revenue multiple, the revenue-based valuation is $600,000 – $1,800,000. The SDE method is typically more reliable for small businesses where owner involvement significantly impacts earnings.
A manufacturing firm with $2,000,000 EBITDA and $8,000,000 in revenue. Industry multiples for manufacturing are 3–6x EBITDA and 0.5–2x revenue.
EBITDA Multiple Value: $6,000,000 – $12,000,000
Revenue Multiple Value: $4,000,000 – $16,000,000
Using DCF with 5-year projections, 10% growth, and 18% discount rate, the enterprise value is approximately $8,000,000 – $10,000,000. The final valuation range of $6,000,000 – $12,000,000 reflects a balanced view across all methods.
Business valuation is the process of determining the economic value of a business or company. There are four primary approaches, each with distinct use cases and methodologies:
The revenue multiple approach values a business as a multiple of its annual revenue. This is most common for high-growth companies like SaaS and technology businesses where profitability may be secondary to growth potential.
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) measures a company's operational profitability. The EBITDA multiple method is the most widely used valuation approach for established, profitable businesses.
SDE adds back the owner's salary, benefits, and discretionary expenses to net income. This is the standard valuation method for small businesses (under $5M value) where the owner's involvement significantly affects earnings.
DCF projects future free cash flows and discounts them back to present value using a discount rate that reflects the risk of the investment. This method is ideal for businesses with predictable cash flows and growth trajectories.
Business valuation is the process of determining the fair market value of a business. Whether you're planning to sell your company, attract investors, or simply understand what your business is worth, using a business valuation calculator provides a solid starting point for estimating your company's market value. The most accurate valuations typically combine multiple methods to triangulate a realistic price range.
Why multiple valuation methods matter: No single approach tells the complete story. A SaaS company with high growth but low profitability will look very different under a revenue multiple vs. an EBITDA multiple. By comparing all four methods — revenue multiple, EBITDA multiple, SDE multiple, and DCF — you get a comprehensive view of your business's value from different angles, helping you negotiate from a position of strength whether you're buying or selling.
Valuation multiples vary significantly by industry. Below is a reference table showing typical valuation ranges for common business types. These are general guidelines — actual multiples depend on growth rate, profitability, customer concentration, market position, and deal-specific factors.
| Industry | Revenue Multiple | EBITDA Multiple | SDE Multiple |
|---|---|---|---|
| SaaS / Software | 5.0x – 10.0x | 6.0x – 10.0x | 4.0x – 8.0x |
| E-Commerce / Retail | 1.0x – 3.0x | 3.0x – 5.0x | 2.0x – 4.0x |
| Restaurant / Food Service | 0.5x – 1.5x | 2.0x – 4.0x | 1.5x – 3.0x |
| Construction / Contracting | 0.5x – 1.5x | 1.0x – 3.0x | 1.5x – 2.5x |
| Manufacturing / Industrial | 0.5x – 2.0x | 3.0x – 6.0x | 2.0x – 4.0x |
Follow these steps to estimate your business's value:
Higher growth rates command higher multiples. A SaaS business growing 30% YoY will trade at 8–12x revenue, while a 5% grower might only get 2–4x. Growth is the single biggest driver of valuation premiums.
Businesses with subscription or recurring revenue models are worth more because future cash flows are predictable. A dollar of recurring revenue is typically worth 2–3x more than one-time revenue.
If your top 3 customers represent more than 30% of revenue, your valuation may be discounted by 15–25%. Diversified customer bases reduce risk and command higher multiples.
High-margin businesses (70%+ gross margins) trade at significantly higher multiples than low-margin businesses. A 20% EBITDA margin business might get 2x the multiple of a 5% margin business.
⚠️ Important Disclaimer: This Business Valuation Calculator is for informational and educational purposes only. It provides estimates based on industry-standard valuation methodologies and generic multiples. Actual business valuations depend on numerous factors including market conditions, specific deal terms, due diligence findings, and negotiation dynamics. Results should be verified with a qualified business appraiser, M&A advisor, or certified public accountant before making any financial decisions, pricing a business for sale, or making an acquisition offer. This calculator does not provide financial or investment advice.