Business Valuation Multiples Calculator

Estimate your business value using Revenue, EBITDA, SDE, and Earnings multiples — with industry benchmarks.

Please enter a valid revenue amount.
Please enter a valid EBITDA.
Please enter a valid SDE amount.
Please enter a valid net income.

Slide to set valuation multiples. Industry defaults auto-fill when you select a sector.

8.0×
15.0×
4.0×
20.0×

Apply discounts or premiums to refine your estimate.

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Negative = slower growth or risk discount; Positive = high-growth premium
Estimated Blended Valuation
Valuation by Method
Adjusted Enterprise Value Breakdown
Multiple Sensitivity Table
Shows EBITDA valuation across different multiple ranges

How to Use This Business Valuation Calculator

Enter your business's annual revenue, EBITDA, seller's discretionary earnings (SDE), and net income. Select your industry to auto-fill typical valuation multiples, then adjust them using the sliders in the "Adjust Multiples" tab. Add any debt, cash balances, or risk adjustments in the third tab, then click Calculate Business Valuation.

The tool outputs four separate valuations plus a blended estimate, a visual bar chart comparison, and an adjusted enterprise value breakdown.

Why This Matters

Whether you're preparing to sell your business, raise capital, negotiate a partnership buyout, or simply want to understand what you've built — knowing your business valuation is critical. Yet most small business owners have no idea what their company is actually worth.

The most common methods buyers and investors use are revenue multiples (popular for SaaS and fast-growing companies), EBITDA multiples (standard for mid-market deals), SDE multiples (most common for businesses under $5M in value), and P/E multiples (used for stable, mature businesses).

As a concrete example: a software company with $2M revenue and $500K EBITDA might be worth $16M on a revenue basis (8× revenue) but only $7.5M on an EBITDA basis (15× EBITDA). Understanding the spread between methods — and which one a buyer is likely to use — is the difference between leaving money on the table and getting full value.

Industry context matters enormously. A restaurant valued at 2–3× SDE would look very different from a SaaS company at 8–15× revenue. This tool incorporates industry-specific benchmarks so your estimate is grounded in real market data.

How It's Calculated

Each valuation method applies a multiple to a specific financial metric:

Revenue Valuation = Annual Revenue × Revenue Multiple
EBITDA Valuation = EBITDA × EBITDA Multiple
SDE Valuation = SDE × SDE Multiple
Earnings Valuation = Net Income × P/E Multiple

The Blended Valuation is a weighted average of available methods (EBITDA-weighted most heavily for larger businesses, SDE for smaller ones). Adjustments are then applied:

Enterprise Value = Blended Valuation × (1 + Growth Adj%) × (1 + Concentration Adj%)
Equity Value = Enterprise Value − Debt + Cash

Tips & Common Mistakes

Frequently Asked Questions

What's the difference between EBITDA and SDE?

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is used for larger businesses and doesn't include the owner's salary. SDE (Seller's Discretionary Earnings) adds back the owner's salary and personal perks, making it more relevant for small businesses where the owner is the primary operator. SDE multiples are typically used for businesses under $2–3M in enterprise value.

Are these valuations what I'll actually sell for?

These are market-based estimates using industry multiples — a strong starting point, but your actual sale price depends on deal structure, buyer motivation, market conditions, and due diligence findings. This tool gives you the range and methodology professional buyers will use to frame their offers. Think of it as an educated benchmark, not a guarantee.

What revenue multiples are realistic for SaaS businesses?

As of recent market data, SaaS companies with strong growth (30%+ ARR growth) and good retention (90%+ NRR) can achieve 8–15× revenue. Slower-growing or churn-heavy SaaS companies trade at 2–5× revenue. The market has cooled significantly from the 2021 peak of 30–40×, and profitability is now weighted more heavily alongside growth.

How do I value a business with negative EBITDA?

For unprofitable businesses, revenue multiples become the primary methodology. Investors will look at growth rate, gross margin, and the path to profitability. Alternatively, a discounted cash flow (DCF) model projecting future profitability may be used. This calculator will automatically skip negative-metric methods and show you only the applicable ones.