Business Valuation Calculator
Get a quick estimate of business value using three common methods. Enter revenue, net income, assets, liabilities, and an industry multiplier to see valuations from revenue multiples, earnings multiples, and asset-based approaches.
Business valuation is both an art and a science. This calculator provides three common approaches: revenue multiple, earnings multiple, and asset-based valuation. Each method suits different situations, and sophisticated valuations typically use all three (and more) to triangulate a fair price range.
The revenue multiple method values a business at Revenue x Industry Multiple. Multiples vary dramatically by industry: professional services firms might trade at 0.5-2x revenue, e-commerce at 1-3x, SaaS companies at 5-15x, and high-growth tech companies at 10-20x+. The earnings multiple method uses a P/E ratio (typically 10x for small businesses, higher for growing companies) applied to net income. This approach rewards profitability over pure growth.
The asset-based method (Total Assets - Total Liabilities) is most relevant for asset-heavy businesses like manufacturing, real estate, or retail with significant inventory. It represents the liquidation floor value. For most businesses, the actual value exceeds the asset-based value due to goodwill, brand value, customer relationships, and future earning potential. Professional appraisals also use Discounted Cash Flow (DCF) analysis and comparable transaction analysis for more accurate valuations.