Business Valuation Estimator
Estimate what your business could be worth using industry-standard revenue, SDE, and EBITDA multiples.
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
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.
The formula
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.
Pro tip
SaaS businesses command the highest multiples because of recurring revenue predictability. If you run a service business, productizing even a portion of your revenue into subscription offerings can dramatically increase your valuation multiple. A $1M revenue service business at 1x revenue is worth $1M, but shift 30% to SaaS-like recurring and you could justify a 2-3x blended multiple.
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