FreeCalculators

Business Valuation Calculator

Estimate your business value using three methods — earnings multiple, DCF, and asset-based — to find a realistic range.

Business & Tax · Reviewed by FreeCalculators Editorial · Updated 2026-09-01

Your details

Earnings before interest, taxes, depreciation, amortization.

SaaS 3–8x, services 1–3x, retail 0.5–1.5x, manufacturing 0.8–2x.

SaaS 8–15x, services 4–7x, manufacturing 4–6x, retail 3–5x.

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How it works

The Business Valuation Calculator is designed to help entrepreneurs and business owners estimate the value of their business using three commonly accepted methods: revenue multiple, EBITDA multiple, and asset-based valuation. Each method provides a unique perspective on the business's worth, allowing users to arrive at a more comprehensive understanding of their company's value. For instance, if your business generates an annual revenue of $1,000,000 and the industry revenue multiple is 2.5, the revenue-based valuation would be calculated as $1,000,000 multiplied by 2.5, resulting in a value of $2,500,000. Similarly, if your Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is $200,000 and the industry EBITDA multiple is 5, the EBITDA-based valuation would be $200,000 multiplied by 5, yielding a value of $1,000,000. The asset-based approach considers the total assets of your business, which in this example is $500,000. By averaging these three values, you can derive a realistic estimate of your business's worth, aiding in key decisions like selling, attracting investment, or planning for future growth. Interpreting the primary output is straightforward: the calculator provides you with a range of values based on the methods used. This range reflects the different ways your business can be valued, depending on market conditions and industry standards. It’s important to understand that these values are estimates and should be used as a guideline rather than a definitive answer. One common mistake is to rely solely on one method of valuation. Each method has its strengths and weaknesses, and using only one could lead to an inaccurate assessment of your business's true worth. For a more holistic view, it’s advisable to consider all three valuation methods and their outputs.

Formula


                Revenue value = Revenue × Industry revenue multiple | EBITDA value = EBITDA × Industry EBITDA multiple | Asset value = Total assets (adjusted for market value)

Tips

  • Regularly update your financial data to ensure accurate valuations.
  • Consider industry trends that may affect revenue and EBITDA multiples.
  • Consult with a financial advisor for insights on market conditions.
  • Use the average estimate from the calculator as a negotiation tool.

Frequently asked questions

What is the purpose of the Business Valuation Calculator?
The calculator estimates your business value using revenue, EBITDA, and asset-based methods.
How often should I assess my business's value?
It’s advisable to reassess your business value at least annually or when significant changes occur.
What if my industry doesn't have a clear revenue or EBITDA multiple?
Research similar businesses in your sector or consult industry reports for guidance.
Can I use this calculator for any type of business?
Yes, the calculator can be used for various business types, but results may vary based on industry specifics.