What You'll Need
- 1.Your most recent annual income statement or profit-and-loss report with gross revenue and total expenses.
- 2.Owner compensation details -- salary, draws, and personal perks that a new buyer would not incur (used to calculate seller's discretionary earnings).
- 3.Basic business info such as industry, years in operation, and employee count for accurate multiple selection.
How This Calculator Works
This business valuation calculator estimates fair market value using three widely accepted approaches: SDE multiples (seller's discretionary earnings), EBITDA multiples, and revenue multiples. Each method is calibrated with industry-specific comparable transaction data drawn from real small-business sales, the same data set used by business brokers and certified valuation analysts in formal appraisals. The result is a defensible valuation range -- not a single number -- so you can see how your business compares to recent M&A transactions in your sector.
Business Valuation Calculator
Get your free valuation in three simple steps
Tell us about your business
This information helps us select the right valuation multiples for your industry. Your industry classification determines which valuation multiples apply. Businesses in different sectors trade at significantly different multiples. A SaaS company typically commands 3x-12x revenue, while a restaurant sells for 0.3x-0.8x.
If your business spans multiple sectors, choose the industry that generates the majority of your revenue.
Frequently Asked Questions
How accurate are online business valuation calculators?
Online business valuation calculators that use industry-specific multiples and multiple valuation methods (SDE, EBITDA, and revenue multiples) typically produce estimates within 10-20% of formal appraisals for standard small businesses. Accuracy depends on the quality of financial data you enter and how well the tool accounts for industry differences. Valzura uses real M&A transaction data across 52 industries to calibrate its multiples, which narrows the gap between calculator estimates and professional valuations.
How do you calculate the value of a small business?
The most reliable approach uses three methods simultaneously. First, calculate seller's discretionary earnings (SDE) and multiply by the industry-specific SDE multiple. Second, calculate EBITDA and apply the appropriate EBITDA multiple. Third, multiply annual revenue by the industry revenue multiple as a cross-check. Weighting these three results produces a defensible fair market value range. Our calculator runs all three methods automatically using your actual financial data and industry benchmarks.
What information do I need for a business valuation?
You need your most recent annual revenue, cost of goods sold, total operating expenses, owner compensation (salary plus draws), personal expenses run through the business (owner perks), and depreciation. Three years of data produces the most accurate result, but one year is enough for an initial estimate. If you have your profit-and-loss statement handy, you can complete the valuation in under five minutes.
Is a business valued on revenue or profit?
Most small businesses are valued on profit, specifically seller's discretionary earnings (SDE) for owner-operated businesses and EBITDA for larger companies with hired management. Revenue multiples serve as a cross-check but are less precise because two businesses with identical revenue can have vastly different profitability. High-growth or pre-profit businesses (particularly in SaaS and technology) are the main exception where revenue multiples carry more weight.
What is the difference between SDE and EBITDA?
SDE (seller's discretionary earnings) adds back the owner's total compensation, personal benefits, and non-cash charges to net income, measuring the full economic benefit available to a single owner-operator. EBITDA (earnings before interest, taxes, depreciation, and amortization) does not add back owner compensation, making it the standard metric for businesses with hired management or revenue above $5 million. Most businesses under $5M revenue use SDE multiples; larger operations use EBITDA multiples.