Business Valuation Calculator
Estimate the True Worth of Your Company
Use this free Business Valuation Calculator to estimate your company's market value based on key metrics like annual revenue, profit, and growth rate. Whether you're selling, buying, or raising investment, understanding your valuation helps you make informed financial decisions.
The calculator estimates value using a mix of earnings-based, revenue-based, and asset-based approaches.
Valuation = (EBITDA × Industry Multiple) ± Adjustments for Growth & Liabilities
- • Industry type & market demand
- • Consistent profit margins
- • Customer retention rate
- • Intellectual property and brand equity
- • Growth potential and scalability
- • Debt and liabilities
Input Parameters:
- Annual Revenue: $500,000
- Annual Profit: $100,000
- Growth Rate: 10%
- Industry: SaaS (4.5x Multiple)
Results:
- Estimated Business Value: $450,000 – $550,000
- Revenue-Based: $2,250,000
- Profit-Based: $900,000
- Growth Adjusted: $1,575,000
How do you calculate the value of a business?
Business valuation typically involves analyzing revenue, profit, assets, industry multiples, growth rates, and market conditions to determine fair market value.
What multiple is used for business valuation?
Multiples vary by industry: SaaS (3-6x), retail (0.8-1.2x), manufacturing (1.5-2.5x), consulting (1.2-2.0x), based on EBITDA or revenue.
What factors increase business value?
Strong growth, consistent profits, recurring revenue, low customer concentration, strong brand, proprietary technology, and scalable operations increase value.
How accurate is this calculator?
This provides an estimate. Professional valuations consider additional factors like market conditions, competition, and specific business circumstances.
Can this valuation be used for selling a business?
It's a good starting point, but professional valuation is recommended for legal and financial transactions to ensure accuracy and defensibility.