Enter your company financials

Type annual revenue, EBITDA, net income, asset value, and total debt. Realistic last-twelve-month figures produce the most defensible valuation. Leave a field at zero if you don't have it — the calculator only uses methods that have usable inputs.

2

Pick your industry and method

Select the closest industry — multiples differ sharply between SaaS, retail, manufacturing, healthcare, professional services, and food & beverage. Choose a single valuation method or leave it on All Methods to see a weighted blended estimate.

3

Compare ranges and equity value

Read the blended enterprise value plus each method's low–mid–high range on the Method Comparison tab. Equity value subtracts total debt. A wide spread between methods is a signal to dig deeper before agreeing a number with a buyer or investor.

EBITDA multiple valuation

EV = EBITDA × industry_multiple × adjustment_factor

The most common lower-middle-market method. Industry multiple midpoints range from 4× (retail, F&B) to 11× (SaaS, healthcare). Adjustment factor scales for company age and revenue growth.

Revenue multiple valuation

EV = annual_revenue × industry_revenue_multiple × adjustment_factor

Best for high-growth or pre-profit companies where EBITDA understates value. SaaS commonly transacts at 4–10× revenue; mature retail at 0.5–1.5×.

Earnings (P/E) multiple valuation

EV = net_income × P/E_multiple × adjustment_factor

Mirrors how public equity is valued. Only applies when net income is positive. Private-company P/E ranges sit below comparable public multiples to reflect illiquidity.

Discounted Cash Flow (Gordon growth)

EV = CF × (1 + g) / (r − g)

A single-stage Gordon-growth approximation using net income (or 70% of EBITDA as a proxy) as the free cash flow surrogate. Discount rate r varies by industry risk; terminal growth g is floored at 2% and capped at one-third of the user's stated growth rate.

Asset-based (book) valuation

EV = max(0, total_assets − total_liabilities)

A downside floor — what's left if you wind the business up and pay off creditors. Most relevant for asset-heavy or distressed businesses.

Blended estimate

EV_blended = Σ (method_value × weight) / Σ (weight)

Default weights: EBITDA 35%, DCF 20%, Earnings 20%, Revenue 15%, Asset-based 10%. Methods with zero usable inputs are skipped and their weight is excluded from the denominator.

Equity value

Equity = Enterprise_Value − total_debt

Equity is what owners actually receive at sale. Buyers acquire the business 'cash-free, debt-free,' so debt comes off the headline enterprise value.

Editorial accountability

Author: Calculover Editorial Team - Business valuation methodology — based on published lower-middle-market transaction data

Owner: Calculover Editorial Standards - Reviews YMYL calculator outputs against authoritative industry sources before publication

Last reviewed: 2026-05-16

Last verified: 2026-05-16

Methodology

Industry multiple ranges are sourced from IBBA Market Pulse Survey, BVR DealStats, PitchBook lower-middle-market benchmarks, and Pepperdine PCAP. Adjustment factor scales the range midpoint by company age (up to +20% maturity premium) and revenue growth (up to +24% growth premium). DCF uses Gordon-growth with industry-specific discount rates (11–14%) and a terminal growth rate floored at 2% and capped at one-third of stated revenue growth. Weights for the blended estimate are calibrated to lower-middle-market practitioner conventions — EBITDA 35%, DCF 20%, Earnings 20%, Revenue 15%, Asset-based 10%.

Assumption: Inputs reflect the trailing twelve months of audited or accountant-reviewed financials, not pro-forma or owner-adjusted figures.

Assumption: Industry multiples are aggregated medians from lower-middle-market transactions ($1M–$50M enterprise value). Mid-market and upper-mid-market deals trade at higher multiples not modelled here.

Assumption: The buyer is a financial buyer or strategic acquirer paying cash-free, debt-free. Add-backs for owner compensation and discretionary expenses are assumed already reflected in EBITDA.

Assumption: Revenue growth rate represents sustainable year-over-year growth, not a one-time spike from a single customer or windfall.

Limitations & guidance

Does not adjust for customer concentration risk — single-customer dependencies above 20% routinely cut valuation by 15–30%.

Does not model deal structure (earn-outs, seller notes, equity rollover, working-capital pegs) which often shift effective value by 10–25%.

Treats all companies in the same industry identically — does not account for sub-vertical, geography, regulatory licences, or proprietary technology.

DCF uses single-stage Gordon growth, which understates value for hyper-growth companies in years 1–5 where multi-stage DCF would be more accurate.

Adjustment factor is bounded at ±35–45%; very early-stage or distressed companies need bespoke modelling outside this calculator's range.

Professional guidance: This calculator is for educational and informational purposes only and is not investment, tax, legal, M&A, or financial advice. Business valuation drives life-changing financial decisions and is highly sensitive to deal structure, buyer type, and dozens of qualitative factors this tool cannot see. Before negotiating a sale, raising capital, settling an estate, or making any binding decision based on a valuation, consult a chartered business valuator (CBV), CPA, M&A advisor, or qualified attorney who can review your specific situation.

Primary sources

IBBA Market Pulse Survey — quarterly lower-middle-market transaction multiples

BVR DealStats — private company transaction database

Pepperdine Private Capital Markets Project (PCAP) annual report

PitchBook Lower-Middle-Market Quarterly Benchmarks

EBITDA Earnings before interest, taxes, depreciation, and amortization. A proxy for cash-generating capacity that strips out financing and accounting choices, making companies easier to compare across capital structures.

Enterprise Value (EV) The total value of the operating business, independent of how it is financed. EV equals equity value plus net debt, and is what buyers usually quote in M&A headline figures.

Equity Value What the company's shareholders are actually paid at sale. Equity = Enterprise Value − Total Debt + Cash. For sole-proprietor businesses with no cash on the balance sheet, equity = EV − debt.

Industry Multiple The ratio applied to revenue, EBITDA, or earnings to arrive at a valuation. Sourced from comparable private transactions, public company multiples, and industry datasets like IBBA, BVR DealStats, and PitchBook benchmarks.

Blended Valuation A weighted average of multiple valuation methods. The weighting reflects which methods are most reliable for the business's stage: income-based methods dominate for profitable companies, revenue-based for high-growth pre-profit firms.

DCF (Discounted Cash Flow) A model that values a company as the present value of its future cash flows. Gordon-growth is a single-stage shortcut: CF × (1 + g) / (r − g). Sensitive to small changes in r and g.

Adjustment Factor A premium or discount applied to the midpoint of an industry multiple range, based on the company's age (maturity premium) and revenue growth rate (growth premium). Ranges from −35% to +45% in this calculator.

Revenue Multiple Enterprise Value ÷ Annual Revenue. Most commonly cited for SaaS and other recurring-revenue businesses, where it acts as a sanity check for income-based methods.

💻

Bootstrapped SaaS founder, $2M ARR

Selling a 5-year-old SaaS business growing 35% with 20% EBITDA margin

Annual Revenue $2,000,000 EBITDA $400,000 Net Income $300,000 Industry Technology / SaaS Growth 35% Total Debt $50,000

EBITDA-multiple says ~$5.0M, revenue-multiple says ~$15M, blended lands near $8–9M. Revenue multiple dominates because high growth disproportionately rewards top-line, but the EBITDA result is the floor most strategic buyers would underwrite.

🏭

Family manufacturer, $5M revenue

Owner of a 15-year-old asset-heavy manufacturing business with 8% growth

Annual Revenue $5,000,000 EBITDA $600,000 Net Income $350,000 Industry Manufacturing Asset Value $2,000,000 Total Debt $800,000

EBITDA × 6.5 puts enterprise value near $3.9M; revenue and earnings methods agree within 20%; asset-based sets a $1.2M floor. After subtracting $800K of debt, equity value is around $3.1M — the number you'd take to a sale negotiation.

There is no single 'right' valuation for a private company — only a range of defensible estimates. This calculator runs your financials through four established methods (EBITDA multiple, revenue multiple, P/E multiple, DCF) plus an asset-based floor, then blends them into a single enterprise value. The result is a starting point for negotiation, not a guarantee of what a buyer will pay.

How blended valuation works

Each method is calibrated to a different reality. EBITDA multiple works when operations are profitable and the buyer is buying cash flow. Revenue multiple works when growth is high and earnings are intentionally suppressed (most SaaS). P/E multiple mirrors how public equity is valued. DCF is the most rigorous but the most assumption-sensitive. Asset-based is a floor.

The calculator weights these methods by reliability for the typical business — EBITDA at 35%, DCF and Earnings at 20% each, Revenue at 15%, Asset-based at 10%. When a method has no usable input (e.g. EBITDA is zero or negative), it drops out and the remaining weights re-normalise. The blended estimate is what most investment bankers triangulate toward in early conversations.

Picking the right method per industry

SaaS and other high-growth technology businesses are almost always valued on revenue multiples first, because reinvesting in growth deliberately compresses EBITDA. Mature retail and food & beverage businesses are the opposite — revenue multiples are tiny (0.5–1.5×) but EBITDA multiples are the dominant signal. Manufacturing sits in the middle, with asset value mattering more than in services because tangible assets back the deal. Healthcare commands premiums on EBITDA and P/E because of high gross margins and recurring revenue.

The Industry Benchmarks tab shows the typical multiple ranges for each sector. The calculator uses the midpoint of each range, then nudges it up or down by an adjustment factor: positive for older + faster-growing companies, negative for pre-traction or shrinking companies.

Limits and edge cases

Multiples are statistical regularities, not laws. Real transactions vary by buyer type (strategic vs. financial), deal structure (earn-outs, seller financing), customer concentration, regulatory risk, and dozens of qualitative factors this calculator does not see. Use the blended estimate as a starting range — typical realised prices in the lower-middle market fall within ±25% of the blended midpoint, but a major customer-concentration issue or a single hot strategic bidder can move the price by 50% in either direction.

If your business has unusual economics — recurring contracts longer than 3 years, customer concentration over 30%, regulatory licences that block competitors, or a key-person risk — engage a chartered business valuator (CBV) or M&A advisor before acting on these numbers. The same goes for tax planning, ESOPs, divorce settlements, and any context where the valuation is being challenged by a counter-party.

How do I value a small business?+

Combine three or four valuation methods rather than relying on one. Apply the appropriate industry multiple to EBITDA, revenue, and earnings; estimate a Gordon-growth DCF; and compute an asset-based floor. The blended midpoint, adjusted for age and growth, is your starting range. Expect realised prices to fall within roughly ±25% of that midpoint in normal market conditions.

What EBITDA multiple should I use by industry?+

Technology / SaaS typically transacts at 8–15× EBITDA, healthcare at 7–12×, professional services at 5–9×, manufacturing at 5–8×, retail at 4–7×, and food & beverage at 4–8×. These ranges reflect aggregated lower-middle-market data from IBBA Market Pulse, BVR DealStats, and PitchBook. Use the midpoint for a baseline and adjust up or down for company-specific factors like growth rate, customer concentration, and recurring revenue mix.

When should I use a revenue multiple instead of EBITDA?+

Use revenue multiples when EBITDA is negative or artificially low because the company is reinvesting in growth — typical for venture-backed SaaS, biotech, and other high-growth tech businesses. Revenue multiples are also useful as a sanity check against EBITDA-based valuations: if revenue × industry-revenue-multiple is dramatically higher or lower than EBITDA × industry-EBITDA-multiple, something unusual is happening in the cost structure.

When is asset-based valuation the right method?+

Asset-based valuation matters most for asset-heavy businesses (manufacturing, real estate, equipment-intensive services) and for liquidation or distressed-sale scenarios. It is also a useful downside floor for every business: no rational buyer pays less than tangible net asset value unless there is significant negative goodwill (recurring losses, lawsuits, environmental liabilities). For services or software businesses, asset-based valuation usually understates true going-concern value substantially.

How does growth rate affect business valuation?+

Growth rate is one of the single largest valuation drivers. A SaaS business growing 50% is typically valued 2–3× higher per dollar of revenue than one growing 10%, because future cash flows are dramatically larger. This calculator's adjustment factor scales the industry midpoint multiple up by up to 45% for fast-growing mature companies and discounts it by up to 35% for very young or shrinking businesses. Lock in a year-over-year growth number you can defend with audited financials — buyers will diligence it hard.

Can I share my valuation results?+

Yes. Click the Share button to copy a URL that encodes all your inputs in the query string. Send the link to a colleague, advisor, or potential buyer and they will see the same financials and result you do. Nothing leaves your browser — the calculator does not store data on a server.

Business Valuation Calculator

Company Financials

Valuation Summary

Method Comparison

Industry Multiple Benchmarks

Which method should I use?

How to Use This Calculator

Enter your company financials

Pick your industry and method

Compare ranges and equity value

Formula & Methodology

Trust, Methodology & Sources

Key Terms Explained

Real-World Examples

Bootstrapped SaaS founder, $2M ARR

Family manufacturer, $5M revenue

How to value a small business: the four methods every owner should know

How blended valuation works

Picking the right method per industry

Limits and edge cases

Frequently Asked Questions

💼 Company Financials

📈 Valuation Summary

📊 Method Comparison

🏭 Industry Multiple Benchmarks

Which method should I use?

How to Use This Calculator

Enter your company financials

Pick your industry and method

Compare ranges and equity value

Formula & Methodology

Trust, Methodology & Sources

Key Terms Explained

Real-World Examples

How to value a small business: the four methods every owner should know

How blended valuation works

Picking the right method per industry

Limits and edge cases

Frequently Asked Questions

Keep Exploring

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Valuation Summary

Method Comparison

Industry Multiple Benchmarks