How the Business Valuation Calculator Works

Revenue Multiple Method

Value = Annual Revenue x Industry Revenue Multiple. We use industry-specific multiples ranging from 0.4x (restaurants) to 4.5x (SaaS). This method works best for businesses with consistent revenue but variable profitability. Rough estimates for illustration; actual figures vary. Check with your accountant or local data.

EBITDA Multiple Method

Value = EBITDA x Industry EBITDA Multiple. EBITDA multiples range from 4x (retail/restaurants) to 18x (SaaS). This is the most common method for profitable businesses being acquired by financial buyers or PE firms. Rough estimates for illustration; actual figures vary. Check with your accountant or local data.

Asset-Based Method

Value = Total Assets minus Total Liabilities (book value). This floor valuation is most relevant for asset-heavy businesses (manufacturing, real estate) or distressed situations. It typically understates the value of service businesses.

The Range Calculation

We average the available methods and apply +/-30% to generate a range. Real valuations vary +/-30-50% based on growth rate, customer concentration, management depth, and deal structure.