Business Valuation Calculator
Calculate business value using multiple methods: market multiples, DCF, asset-based. Understand valuation ranges, industry benchmarks, and factors affecting business worth.
Financial Data
Earnings Before Interest, Taxes, Depreciation, Amortization
Business Profile
Under 3 years: 0.7x multiplier. 3-5 years: 0.85x. 5-10 years: 0.95x. Over 10: 1.0x
Under 5%: 0.9x. 5-10%: 1.0x. 10-20%: 1.1x. Over 20%: 1.2x
Assets & Liabilities
Equipment, inventory, real estate, IP, cash
DCF Parameters
Risk-adjusted rate. Small business: 15-25%. Established: 10-15%
Profitability Analysis
Gross Margin:60.0%
Net Margin:16.0%
EBITDA Margin:24.0%
Industry:Tech
Market Multiples Valuation
Revenue Multiple (2.5x):$12500000.00
EBITDA Multiple (12.0x):$14400000.00
P/E Multiple (25.0x):$20000000.00
Multiples Average:$15633333.33
SaaS/Software companies - Industry standard multiples applied
Asset-Based Valuation
Book Value:$1500000.00
Adjusted Book Value:$1800000.00
Assets minus liabilities, adjusted for market value (1.2x factor)
DCF Valuation
$22173538.92
Discount Rate:12.0%
Projection Years:5
5-year projected EBITDA at 15.0% growth, discounted at 12.0% + 3% terminal growth
Adjustment Factors
Years Factor:1.00x
Growth Factor:1.10x
Adjusted Multiples:$17196666.67
Final Valuation Range
Low$1500000.00
Mid$13723401.86
High$22173538.92
Weighted average across all valuation methods with risk adjustments
Valuation Methods Explained
- Market Multiples: Compare to similar businesses sold. Revenue multiple for early-stage, EBITDA for profitable, P/E for stable earnings.
- DCF: Project future cash flows and discount to present value. Best for growing businesses with predictable earnings.
- Asset-Based: Book value (assets minus liabilities). Adjusted for market appreciation. Good for asset-heavy businesses.
- Rule of Thumb: Industry-specific formulas (e.g., restaurants = 3x monthly gross, agencies = 0.75x annual revenue).
- Factors: Years in business affects stability. Growth rate affects future potential. Customer concentration, key person risk, recurring revenue boost value.
- Due Diligence: Verify financials, contracts, IP, legal issues, customer retention, employee turnover. Professional valuation recommended for M&A.