Business Valuation Calculator
Get a ballpark valuation for your business. Understand what drives value and how to increase your multiple.
Business Financials
$
$
SDE = Seller's Discretionary Earnings (profit + owner salary) %
Business Characteristics
%
Subscriptions, retainers, contracts %
Valuation Estimate
Profit Margin 30%
Base Multiple 3.0x SDE
Adjusted Multiple 3.5x After adjustments
Estimated Valuation Range $450K - $600K
Revenue Multiple 1.0x
Monthly Revenue $41,667
Valuation Adjustments
Industry Multiple Benchmarks
SaaS / Software
SDE Multiple 3x - 5x
Revenue Multiple 2x - 10x
Higher multiples for high growth, low churn, sticky product.
E-commerce
SDE Multiple 2x - 4x
Revenue Multiple 0.5x - 2x
Proprietary products and brand loyalty command premiums.
Agency / Services
SDE Multiple 2x - 3.5x
Revenue Multiple 0.5x - 1.5x
Recurring retainers and documented processes add value.
Content / Media
SDE Multiple 2.5x - 4x
Revenue Multiple 1x - 3x
Diversified traffic and email lists increase multiples.
How to Increase Your Valuation
Understanding Business Valuation
SDE vs EBITDA
SDE (Seller's Discretionary Earnings) = Net profit + owner salary + owner perks. Used for businesses under $5M.
EBITDA = Earnings before interest, taxes, depreciation, amortization. Used for larger businesses.
What Drives Multiples
- Growth rate: Higher growth = higher multiple
- Recurring revenue: Predictable income is worth more
- Owner dependency: Less dependency = higher value
- Customer concentration: Diversified is safer
- Traffic diversity: Multiple sources reduce risk
Valuation Methods
- Multiple of earnings: Most common for SMBs
- Multiple of revenue: Used for high-growth, low-profit businesses
- Asset-based: Sum of tangible/intangible assets
- DCF: Discounted future cash flows (complex)
Preparing for Sale
- Clean up financials (12-24 months of P&L)
- Document all processes and SOPs
- Reduce owner involvement
- Diversify customer base
- Secure long-term contracts
- Build email list and owned audiences