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
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
Midpoint estimate: $4,000,000
Valuation Comparison
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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