Business Valuation Calculator
Estimate your business value using multiple valuation methods. Compare revenue multiples, EBITDA multiples, and DCF analysis with industry benchmarks.
Business Valuation Inputs
DCF Analysis Inputs
Estimated Business Value
Low
$2,000,000
Mid
$4,420,665
High
$10,000,000
Based on revenue multiples, EBITDA multiples, and DCF analysis
Valuation Comparison
Valuation Methods
Revenue Multiple
4x - 10x$4,000,000 - $10,000,000
EBITDA Multiple
10x - 20x$2,000,000 - $4,000,000
DCF Analysis
5 year projection$3,261,995
Business Metrics
Annual Revenue
$1,000,000
EBITDA
$200,000
EBITDA Margin
20.0%
Industry
SaaS / Software
Disclaimer: This calculator provides rough estimates based on industry averages. Actual valuations depend on many factors including market conditions, competitive position, customer concentration, recurring revenue, growth trajectory, and more. Consult with a professional advisor for accurate business valuation.
Valuation Methods Explained
This calculator uses three common approaches to business valuation.
Revenue Multiple
Multiply annual revenue by an industry-specific multiple. Best for growth-stage companies or when EBITDA is negative.
EBITDA Multiple
Multiply EBITDA by an industry multiple. Most common for profitable businesses and M&A transactions.
DCF Analysis
Discount projected future cash flows to present value. Most rigorous method, accounts for growth and risk.
Industry Valuation Multiples
Typical valuation ranges vary significantly by industry.
| Industry | Revenue Multiple | EBITDA Multiple |
|---|---|---|
| SaaS / Software | 4x - 10x | 10x - 20x |
| Fintech | 5x - 15x | 12x - 25x |
| Healthcare | 1x - 3x | 6x - 12x |
| E-commerce | 0.5x - 2x | 3x - 6x |
| Professional Services | 0.5x - 1.5x | 3x - 6x |
| Manufacturing | 0.5x - 1.5x | 4x - 7x |
| Retail | 0.3x - 1x | 3x - 5x |
Note: These are approximate ranges. Actual multiples vary based on growth, profitability, and market conditions.
Example: Valuing a $2M ARR SaaS Company
A SaaS company with $2M ARR, $400K EBITDA, and 40% YoY growth. Here's how three methods produce very different numbers:
| Method | Inputs | Valuation |
|---|---|---|
| Revenue Multiple (8x) | $2M ARR × 8x | $16M |
| EBITDA Multiple (15x) | $400K EBITDA × 15x | $6M |
| DCF (5-year, 12% discount) | Projected cash flows | $11.2M |
The range ($6M–$16M) reflects different assumptions. SaaS companies with strong retention and growth typically command revenue multiples of 6–12x. EBITDA multiples apply better to profitable, slower-growth businesses. Most Series A SaaS companies are valued on revenue multiples because they're not yet profitable.
Who This Calculator Is For
Founders Preparing to Fundraise
Estimate your pre-money valuation before entering investor conversations so you can negotiate from a position of knowledge.
Small Business Owners Exploring a Sale
Get a realistic range before engaging a broker or advisor so you can set expectations and evaluate offers confidently.
Advisors Running Quick Valuations
Generate instant estimates for clients using multiple methods to illustrate valuation ranges during early-stage conversations.
Frequently Asked Questions
Common questions about business valuation.
Why do different methods give different valuations?
Each method emphasizes different aspects of your business. Revenue multiples favor growth, EBITDA multiples favor profitability, and DCF reflects future potential. The range between methods shows market uncertainty about fair value.
How accurate is an online valuation calculator?
Online calculators provide rough estimates based on industry averages. Real valuations consider dozens of qualitative factors: competitive moats, customer concentration, team quality, IP, market trends, and more. Use this as a starting point, not a final answer.
What increases business valuation?
Key value drivers include: high revenue growth (20%+), strong EBITDA margins, recurring revenue, low customer concentration (no customer >10% of revenue), defensible competitive position, scalable operations, and strong management team.
Should I use revenue or EBITDA valuation?
Use revenue multiples for early-stage or high-growth companies, especially if EBITDA is negative. Use EBITDA multiples for mature, profitable businesses. Most acquirers use EBITDA when making offers, as it reflects actual earnings.
What is EBITDA and why does it matter?
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) shows operating profitability before financial and accounting decisions. It's the standard measure for comparing businesses and setting acquisition prices.
How do you value a service business?
Service businesses typically value at 1–2x annual revenue or 3–6x EBITDA, depending on client concentration, recurring contracts, and owner dependency. A service business with $1M revenue and $200K EBITDA might be worth $600K–$1.2M. Compare this to SaaS businesses that command 6–12x revenue due to recurring revenue and scalability.
How do you value an e-commerce business?
E-commerce businesses typically sell for 2–4x EBITDA or seller discretionary earnings (SDE). Key factors include traffic sources (organic vs paid), brand strength, product margins, and supplier relationships. Inventory is usually valued separately at cost. A business doing $500K in annual profit might sell for $1M–$2M.
What is a good EBITDA multiple for SaaS?
SaaS EBITDA multiples range from 10–20x for high-growth companies (50%+ YoY) to 6–10x for moderate growth (20–50% YoY) and 3–6x for low-growth or mature SaaS. Most early-stage SaaS companies are valued on revenue multiples instead because they're not yet EBITDA-positive.
How much is a $100M revenue company worth?
It depends heavily on industry and growth rate. A $100M ARR SaaS company growing 40%+ could be worth $600M–$1.2B (6–12x revenue). A traditional business with $100M revenue and 10% margins might be worth $200M–$400M (2–4x revenue or 20–40x earnings). Recurring revenue, margins, and growth rate are the biggest valuation drivers.
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