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Enter your annual revenue, SDE/net profit, growth rate, and industry to estimate your business valuation using revenue multiple and SDE multiple methods.

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Business Valuation Calculator

Estimate your business value using revenue and SDE multiple methods with industry-specific benchmarks.

FAQ

What is the revenue multiple method of valuation?

The revenue multiple method values a business by multiplying annual revenue by an industry-specific factor. For example, a SaaS company with $1M revenue might use a 5x multiple, resulting in a $5M valuation. Multiples vary widely by industry, growth rate, and profitability.

What is SDE and how does it affect valuation?

Seller's Discretionary Earnings (SDE) is the total financial benefit a single owner receives from a business, including salary, perks, and net profit. SDE multiples typically range from 1.5x to 6x depending on industry, size, and growth. Higher SDE margins generally command higher multiples.

How does growth rate affect business valuation?

Faster-growing businesses command higher valuation multiples. Businesses growing above 20% annually may see a 30% premium on their multiples, while declining businesses may see a 15% discount. Consistent growth is more valued than volatile growth.

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