Business Valuation Calculator

Why Business Valuation Matters

Business valuation is essential for selling your company, seeking investment, estate planning, or strategic decision-making. Understanding your company's worth helps you negotiate better deals, plan growth, and assess financial health.

How to Use This Calculator

• Select valuation method: Revenue or profit multiple
• Enter financial data: Type freely — we extract numbers from any format
• Adjust multiplier: Use industry benchmarks or your own value
• Click "Calculate" — get instant estimate even with messy input

Formulas Used

Example (Revenue): $500,000 revenue × 2.5 multiplier = $1,250,000 valuation
Example (Profit): $150,000 profit × 5 multiplier = $750,000 valuation

Valuation Methods Explained

Industry Multiplier Benchmarks

Tips to Increase Business Value

• ✅ Increase recurring revenue — subscriptions outperform one-time sales
• ✅ Diversify customer base — reduce dependency on few clients
• ✅ Document systems — make business less owner-dependent
• ✅ Show growth trends — consistent growth increases multiples
• ✅ Clean financials — professional accounting boosts credibility

Advanced Valuation Methods

For more precise valuations:

• DCF (Discounted Cash Flow): Future cash flows discounted to present value
• Market Comparables: Compare to similar recently sold businesses
• Asset-Based: Value of tangible and intangible assets
• EBITDA Multiple: Earnings before interest, taxes, depreciation, and amortization