Business Valuation Calculator

Estimate business value using revenue and earnings multiples.

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What This Calculator Does

Estimate business value using revenue and earnings multiples.

It combines Annual Revenue, Annual Earnings (EBITDA or SDE), Revenue Multiple, Earnings Multiple to estimate Estimated Value (Average), Revenue-Based Value, Earnings-Based Value.

Formula & Method

Core equations: Three valuation methods: V_{revenue} = R \times m_R V_{earnings} = E \times m_E V_{asset} = A - L where R is annual revenue, E is annual earnings, m_R and m_E are their respective multiples, A is total assets, and L is total liabilities. The blended estimate averages the revenue and earnings methods. Inputs are applied in base units, then derived metrics are computed from the same equations and rounded for display.

Notation used in the formulas: R = Estimated Value (Average); x_{1} = Annual Revenue; x_{2} = Annual Earnings (EBITDA or SDE); x_{3} = Revenue Multiple; x_{4} = Earnings Multiple; x_{5} = Total Assets; x_{6} = Total Liabilities.

Method summary: inputs are normalized to consistent units, core equations are evaluated, then secondary values are derived and rounded for display.

Use this calculator for quick scenario analysis. Start with baseline values, change one driver at a time, and compare how sensitive the results are to each input shown above.

Inputs Used

Annual Revenue: Total annual revenue
Annual Earnings (EBITDA or SDE): Earnings before interest, taxes, depreciation, amortization
Revenue Multiple: Industry revenue multiple (e.g., 1-3x for services, 3-10x for SaaS)
Earnings Multiple: Industry earnings multiple (e.g., 3-5x for small businesses)
Total Assets: Total value of business assets
Total Liabilities: Total business debts and liabilities

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