Business Valuation Calculator

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Business Valuation Calculator

Revenue & Income

Enter your business financial data for the last 12 months.

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Owner Add-Backs

Expenses added back to calculate Seller's Discretionary Earnings (SDE).

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Assets & Liabilities

Used for the Asset-Based valuation method.

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Business Details

Industry and history affect the valuation multiplier.

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Estimated Business Value

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Average of all applicable valuation methods

Valuation by Method

SDE Multiple ?SDE multiplied by industry-specific multiple
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Revenue Multiple ?Revenue multiplied by industry revenue multiple
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Asset-Based ?Total assets minus total liabilities
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Discounted Cash Flow ?Present value of projected future cash flows
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Valuation Comparison

Key Financial Metrics

SDE
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EBITDA
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Net Assets
$0
Gross Margin
0.0%
Net Margin
0.0%
SDE Margin
0.0%
Debt-to-Asset
0.0%
SDE Multiple
2.5x
Revenue Multiple
0.5x

Discounted Cash Flow Projection

Steps to Calculate

  1. 1 Enter your annual revenue and net income in the Revenue & Income section.
  2. 2 Add owner add-backs: salary, depreciation, amortization, interest, and any non-recurring expenses.
  3. 3 Input your assets and liabilities for the asset-based valuation method.
  4. 4 Select your industry and enter years in business to apply the correct multiplier.
  5. 5 Adjust the growth rate, discount rate, and projection years for the DCF method.
  6. 6 View your results instantly — all four valuation methods update in real time.

Valuation Methods & Formulas

SDE Multiple Method
Valuation = SDE × Industry Multiple × Years Adjustment

Seller's Discretionary Earnings (SDE) = Net Income + Owner Salary + Depreciation + Amortization + Interest + Non-Recurring Expenses. Multiplied by an industry-specific multiple (typically 1.5–4.0x) and adjusted for business maturity.

Revenue Multiple Method
Valuation = Annual Revenue × Revenue Multiple × Years Adjustment

Uses industry-standard revenue multiples. Best for high-growth businesses or those with inconsistent earnings. SaaS companies typically command 2–5x revenue.

Asset-Based Method
Valuation = Total Assets − Total Liabilities

Calculates the net asset value of the business. Most relevant for asset-heavy businesses like manufacturing, real estate, or wholesale distribution.

Discounted Cash Flow (DCF)
Valuation = Σ [CF × (1+g)^t / (1+r)^t] + Terminal Value

Projects future cash flows based on a growth rate, then discounts them back to present value using a discount rate that reflects investment risk. Terminal value captures value beyond the projection period.

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