Business Valuation Estimator
What is your business worth? Use three simplified valuation methods — Revenue Multiple, Earnings Multiple, and Discounted Cash Flow — to estimate your business value and understand your valuation range.
1Financial Metrics
Total annual revenue (top line).
Net profit after all expenses and taxes.
2Industry & Growth
Used to apply industry-specific valuation multiples.
Used in DCF projection. Typical: 5–20%.
Enter your revenue and net income to estimate your business valuation.
Frequently Asked Questions
What does “Revenue Multiple” mean?
Revenue Multiple is a simplified valuation method: Valuation = Revenue × Multiple. For example, a consulting firm with $500k revenue at 1.5x multiple = $750k valuation. It's quick but ignores profitability.
What does “Earnings Multiple” mean?
Earnings Multiple values based on profit: Valuation = Net Income × Multiple. A $100k profit business at 6x multiple = $600k valuation. It reflects profitability better than revenue multiple.
What is DCF (Discounted Cash Flow)?
DCF projects future earnings, discounts them to present value, and adds a terminal value. It's the most theoretically sound but most complex method. This calculator uses a simplified 5-year DCF.
Which method should I trust?
None perfectly. The range between methods shows uncertainty. Use all three and focus on the middle. Professional valuations use multiple methods and adjust for business-specific factors.
How do industry multiples work?
Multiples vary by industry based on growth, risk, and profitability. SaaS companies trade at higher multiples (5x revenue) because they're scalable. Retail trades lower (0.8x) because margins are thin.