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What is Your Business Worth?

Get a professional-grade business valuation in seconds. Our tool uses industry-standard SDE, EBITDA, and Revenue multiples to estimate your company's market value.

Valuation Engine

Professional Grade Analysis

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Complete the financial profile on the left to generate a comprehensive business valuation report.

Why Use Our Valuation Tool?

The most comprehensive free valuation system for entrepreneurs.

Instant Results

No waiting for emails or consultants. Get your valuation range immediately.

Industry Standards

We use the same multiples used by business brokers and M&A advisors.

Growth Factored

Our algorithm adjusts values based on your historical and projected growth.

Business Insights

Expert advice on valuation and exit strategies.

Valuation Basics

Understanding Business Valuation: A Comprehensive Guide

Learn the fundamentals of business valuation, including the most common methods used by brokers and M&A advisors.

Financial Metrics

SDE vs. EBITDA: Which One Should You Use?

Discover the differences between SDE and EBITDA and which metric is most appropriate for your business size.

Growth Strategy

5 Ways to Increase Your Business Valuation Today

Practical steps you can take right now to boost your company's market value before a sale.

The Science Behind Business Valuation

Understanding what your business is worth is more than just looking at your bank balance. It's about quantifying your hard work, market position, and future potential.

Market Multiples

Most small to mid-sized businesses are valued using a multiple of their earnings. This represents how many years of profit a buyer is willing to pay upfront to own the future cash flows of the business.

Risk Assessment

Valuation is inversely related to risk. High-risk businesses (owner-dependent, high customer concentration) command lower multiples, while low-risk businesses (recurring revenue, strong team) command higher ones.

How Our Calculator Works

Our algorithm uses a weighted approach combining three primary financial metrics: SDE (Seller's Discretionary Earnings), EBITDA, and Total Revenue. We then apply industry-specific benchmarks derived from thousands of real-world transactions.

  • 1

    Financial Input: We analyze your revenue, profit, and growth rates.

  • 2

    Industry Benchmarking: Your data is compared against sector-specific multiples (e.g., SaaS vs. Retail).

  • 3

    Risk Adjustment: We factor in owner dependency and market stability to refine the valuation range.

Pro Tip: Maximizing Your Exit

To get the highest possible multiple, focus on building a business that can run without you. Buyers pay a premium for systems, documented processes, and a management team that stays after the sale.

Frequently Asked Questions

Frequently Asked Questions

Everything you need to know about business valuation.

How is a business valued?

Business valuation typically uses three main methods: Asset-based, Market-based (multiples), and Income-based (DCF). Our tool focuses on Market Multiples (SDE, EBITDA, Revenue) which are most common for small to mid-sized businesses.

What is SDE?

SDE stands for Seller's Discretionary Earnings. It is the total financial benefit a single owner-operator gets from the business, including profit, salary, and personal expenses run through the business.

What is a valuation multiple?

A multiple is a factor (e.g., 3x) applied to a financial metric like SDE or EBITDA to determine the business value. Multiples vary by industry, growth rate, and risk.

How accurate is this calculator?

Our calculator provides a high-level estimate based on industry averages. It is a great starting point, but a formal valuation requires a deep dive into your specific financials and market conditions.

Why does industry matter?

Different industries have different risk profiles and growth potentials. Tech companies often have higher multiples due to scalability, while retail might have lower multiples due to inventory risks.

What is EBITDA?

Earnings Before Interest, Taxes, Depreciation, and Amortization. It's a measure of a company's overall financial performance and is used as an alternative to simple net income.

How can I increase my business value?

Focus on increasing recurring revenue, reducing owner dependency, cleaning up financial records, and diversifying your customer base.

Should I value based on Revenue or Profit?

Most profitable businesses are valued based on profit (SDE or EBITDA). Revenue multiples are typically used for high-growth startups or companies with very low margins but high volume.

What is 'Owner Dependency'?

It's the degree to which a business relies on its owner to function. High dependency lowers value because the business is harder for a new owner to take over.

When should I get a professional appraisal?

You should get a formal appraisal when you are ready to list your business for sale, during a partnership buyout, for estate planning, or during legal proceedings.