Business Valuation Calculator
Estimate what your business is worth using multiple valuation methods. See SDE multiples, revenue multiples, EBITDA analysis, DCF projections, and asset-based valuations.
Financial Information
Valuation Assumptions
Estimated Business Value
Valuation by Method
| Method | Value | Basis |
|---|---|---|
| SDE Multiple | $525,000 | 3x SDE |
| Revenue Multiple | $500,000 | 1x Revenue |
| EBITDA Multiple | $400,000 | 4x EBITDA |
| DCF Analysis | $1,970,004 | 15% discount rate |
| Asset-Based | $205,000 | Net assets + earnings |
SDE Multiple Analysis
| Multiple | Valuation |
|---|---|
| 1.5x SDE | $262,500 |
| 2x SDE | $350,000 |
| 2.5x SDE | $437,500 |
| 3x SDE | $525,000 |
| 3.5x SDE | $612,500 |
| 4x SDE | $700,000 |
DCF Projection
| Year | Cash Flow | Present Value |
|---|---|---|
| Year 1 | $192,500 | $167,391 |
| Year 2 | $211,750 | $160,113 |
| Year 3 | $232,925 | $153,152 |
| Year 4 | $256,218 | $146,493 |
| Year 5 | $281,839 | $140,124 |
| Terminal Value | $2,419,120 | $1,202,730 |
| Total DCF Value | $1,970,004 |
Business Valuation Basics
What is SDE?
Seller's Discretionary Earnings = Net Profit + Owner's Salary + Owner Benefits + One-time expenses. It represents the true economic benefit to an owner-operator. Most small businesses sell for 2-4x SDE.
Industry Multiples
Multiples vary by industry, size, and growth. Service businesses: 1.5-3x SDE. Retail: 1.5-2.5x. Manufacturing: 3-5x. SaaS/Tech: 3-10x revenue. Get industry-specific data for accuracy.
Factors Affecting Value
Higher values: recurring revenue, growth, diverse customers, strong systems, owner not critical. Lower values: declining sales, customer concentration, owner-dependent, industry decline.
Frequently Asked Questions
What is SDE (Seller's Discretionary Earnings)?
SDE = Net Profit + Owner's Salary + Owner Benefits + One-time Expenses
It represents the total financial benefit to an owner-operator and is the most common metric for valuing small businesses under $5M.
Typical Industry Multiples
| Industry | SDE Multiple |
|---|---|
| Service businesses | 1.5-3x |
| Retail | 1.5-2.5x |
| Restaurants | 1.5-2.5x |
| Manufacturing | 3-5x |
| Distribution | 2-4x |
| SaaS/Tech | 3-10x revenue |
What increases business value?
- Recurring revenue: Subscriptions, contracts
- Growth: Consistent year-over-year increases
- Diverse customers: No single customer over 10%
- Systems: Documented processes, trained staff
- Owner independence: Business runs without you
- Industry trends: Growing market
What decreases business value?
- Declining revenue or profits
- Customer concentration (one big customer)
- Owner-dependent operations
- Industry in decline
- Outdated technology or equipment
- Legal or regulatory issues