Online Tool Store
Business Valuation Multiple Calculator
Business Valuation Multiple Calculator does the arithmetic; the multiple is the judgement, and half a turn either way is the real answer.
🔒 This tool runs entirely in your browser. Your files are never uploaded to a server.
Finance
Business Valuation Multiple Calculator
Frontend preview — no upload or external service.
Indicative valuation
280,000 EBITDA at 3.5x gives 980,000. At 3.0x it is 840,000 and at 4.0x it is 1,120,000 — a 280,000 range from a half-turn either way.
How the Business Valuation Multiple Calculator works
- Enter revenue and the earnings figure your industry uses — SDE for owner-operated businesses, EBITDA for larger ones.
- Apply a multiple drawn from comparable transactions in your sector, not a general rule of thumb.
- Look at the range across half a turn either side, because that spread is the honest answer.
The method
A multiple valuation applies a market-derived factor to an earnings figure.
value = earnings x multiple
The multiple carries all the judgement: growth, customer concentration, owner dependence and recurring revenue all move it, and a half-turn is a large sum.
FAQ
EBITDA or SDE?
SDE adds back the owner's salary and is standard for owner-operated businesses where the buyer will replace that role. EBITDA suits businesses with management in place. Using the wrong one against the wrong multiple can double or halve the answer.
Where do multiples come from?
Comparable completed transactions in the same sector and size band. Published ranges are broad, and the difference between the bottom and top of a range usually comes down to customer concentration, recurring revenue and how dependent the business is on its owner.
Is this a valuation?
No. It is arithmetic on an assumed multiple. A real valuation examines the accounts, normalises earnings, and tests the assumptions — and a sale price is settled by negotiation regardless.
How we compare
| Feature | Online Tool Store | A spreadsheet | An advisor consultation |
|---|---|---|---|
| Shows sensitivity range | ✓ | ✗ | Sometimes |
| SDE and EBITDA bases | ✓ | ✓ | ✓ |
| No sign-up | ✓ | ✗ | ✗ |
| Nothing uploaded | ✓ | ✗ | ✗ |
Business Valuation Multiple Calculator does the arithmetic; the multiple is the judgement, and half a turn either way is the real answer.