Business Valuation Calculator
Determine your business worth using multiple professional valuation methods
Calculate Business Valuation
Best for profitable businesses with stable earnings
Business Details
Earnings Before Interest, Taxes, Depreciation, and Amortization
Suggested for General Business: 3x
Valuation Results
Method Used: Earnings Multiple
Calculated using: Annual Earnings ($500,000) × Multiplier (3x)
Valuation Analysis
Valuation Methods
Earnings Multiple
Most common for profitable businesses
Revenue Multiple
Best for growth-stage companies
Asset-Based
Ideal for asset-heavy businesses
Discounted Cash Flow
Most comprehensive analysis
Industry Multiples
* These are average multiples and can vary significantly based on specific circumstances
Valuation Tips
Use multiple methods for comprehensive valuation
Consider industry-specific factors
Account for growth potential and risks
Include intangible assets like brand value
Consult professionals for formal valuations
Understanding Business Valuation
What is Business Valuation?
Business valuation is the process of determining the economic value of a company. It's essential for buying, selling, mergers, securing financing, tax purposes, and strategic planning.
Key Valuation Drivers
- •Profitability: Consistent earnings and cash flow
- •Growth Potential: Market opportunities and scalability
- •Market Position: Competitive advantages
- •Asset Base: Tangible and intangible assets
Valuation Formulas
Earnings Multiple:
Value = EBITDA × Multiple
Revenue Multiple:
Value = Revenue × Multiple
Asset-Based:
Value = Assets - Liabilities + Adjustments
DCF:
Value = Σ(CF/(1+r)^t) + Terminal Value
Note: Professional valuations often use multiple methods and consider qualitative factors for a comprehensive assessment.