Estimate the value of a business using industry-standard EBITDA or Revenue multiples.
Business Financials
Estimated Value
Equity Value$900,000Shareholder Value
Enterprise Value$1,000,000Operational Value
Value Components
About this calculator
Overview
Estimate the value of a business using industry-standard EBITDA or Revenue multiples.
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Pro Tips
What is an EBITDA multiple?: It's a way to value a company by multiplying its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) by a number common in its industry. It reflects how many years of profit a buyer is willing to pay.
What is the difference between Enterprise Value and Equity Value?: Enterprise Value (EV) is the total value of the business operations. Equity Value is what the shareholders actually own after adding cash and subtracting debt.
How do I choose a multiple?: Multiples vary by industry. Tech companies often have high multiples (10x-20x), while service or manufacturing businesses might be in the 4x-7x range.
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Fun Facts
"Valuations are not just about math; they also depend on the buyer's strategic interest and current market sentiment."
"The 'SDE' (Seller's Discretionary Earnings) multiple is often used for small businesses instead of EBITDA."
"Valuations can change overnight based on interest rate changes or industry disruptions."
