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00 / Free tool

Business Valuation Estimator

Estimate what your business could be worth using industry-standard revenue, SDE, and EBITDA multiples.

01 / Calculator

Business Valuation Estimator

Inputs

$
$
15%
0%50%100%

Valuation Methods

Revenue Multiple

Low (3.0x)

$3,000,000

Mid (8.0x)

$8,000,000

High (15.0x)

$15,000,000

SDE Multiple

Low (4.0x)

$800,000

Mid (8.0x)

$1,600,000

High (12.0x)

$2,400,000

EBITDA Multiple

Low (6.0x)

$1,200,000

Mid (12.0x)

$2,400,000

High (20.0x)

$4,000,000

Estimated Valuation Range

$800,000to$15,000,000

Midpoint estimate: $4,000,000

Valuation Comparison

Revenue$8.0MSDE$1.6MEBITDA$2.4M$0$3.5M$6.9M$10.3M$13.8M$17.3M

See how this looks with your real financial data

02 / Notes

How it works

Business valuation using multiples works by comparing your financial metrics to what similar businesses have sold for. Revenue multiples are based on your top-line sales. SDE (Seller's Discretionary Earnings) multiples use your net income plus owner benefits and one-time expenses -- this is most common for small businesses under $5M. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) multiples are the standard for larger businesses and institutional buyers, as they normalize for capital structure and accounting decisions.

Formula

Revenue Valuation = Annual Revenue x Industry Revenue Multiple
SDE Valuation = Annual SDE x Industry SDE Multiple
EBITDA Valuation = Annual EBITDA x Industry EBITDA Multiple

Growth Adjustment: >20% growth = 1.2x multiplier, >40% growth = 1.5x multiplier

Why it matters for your business

Understanding your business valuation matters whether you plan to sell or not. It affects fundraising leverage, partnership negotiations, equity compensation decisions, and long-term strategic planning. Knowing which metric drives your valuation helps you focus on the right levers -- a SaaS company should optimize for recurring revenue growth, while a services firm should focus on increasing SDE margins.

04 / Next step

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