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BUSINESS VALUATION CALCULATOR

Business Valuation Calculator — Estimate Company Value

Free business valuation calculator for US companies. Estimate your business value using revenue multiples, EBITDA multiples, discounted cash flow (DCF), and asset-based methods — with industry benchmark comparison.

1. Business Financials

Trailing twelve-month revenue.
Earnings before interest, taxes, depreciation, and amortization.

2. Valuation Multipliers

Typical range: 0.5x – 5.0x.
Typical range: 3x – 10x.

3. Additional Adjustments

Expected annual revenue growth.
Used for DCF — must exceed growth rate.

4. Reference & Notes

BUSINESS VALUATION ANALYSIS

Enterprise Value Assessment

Reference: BV-2026-001
Date:
Annual Revenue $1,000,000.00
EBITDA $200,000.00
Net Income $150,000.00
Estimated Business Value $2,000,000.00
Revenue-Based Value $2,000,000.00
EBITDA-Based Value $1,000,000.00
Asset-Based Value $300,000.00
Industry Average Multiple 2.0x

Valuation Breakdown

Revenue Multiple 2.0x
EBITDA Multiple 5.0x
Net Asset Value $300,000.00
DCF Value $1,802,000.00

Industry Comparison

Your Industry Retail / Consumer
Industry Avg Multiple 2.0x
Your Multiple 2.0x

Valuation Methodology

Revenue-Based Value = Annual Revenue × Revenue Multiplier

$1,000,000.00 × 2.0 = $2,000,000.00

Your business is valued at approximately $2,000,000.00 using the Revenue Multiple method.

Notes

Business valuation for acquisition/exit planning

This calculation is for informational and educational purposes. Actual business value depends on market conditions, financial audit, customer concentration, contracts, and other factors. Consult a certified business valuation professional for transaction decisions.
Prepared By
Date
GUIDE

How to Use This Business Valuation Calculator

This free business valuation calculator estimates the value of a company using multiple industry-standard approaches: revenue multiples, EBITDA multiples, discounted cash flow (DCF), asset-based (net book value), and a blended market comparables method. Enter your financials, choose the valuation method that fits your business, and the calculator shows a primary value plus supporting methods and industry benchmark comparison. Pair it with our EBITDA calculator to standardize earnings, or with the business ROI calculator to evaluate investment scenarios.

1

Enter Business Financials

Enter annual revenue, EBITDA, net income, total assets, and total liabilities from your most recent financial statements.

2

Set Valuation Multipliers

Choose revenue and EBITDA multipliers based on your industry. The calculator auto-fills typical industry averages when you switch industries.

3

Add Adjustments

Enter growth rate, discount rate, market risk premium, and business age for refined valuation.

4

Review Results

See your estimated business value across multiple methods, and how your multiple compares to the industry average.

5

Save, Print or Export

Save a draft in your browser, print the results, or download a PDF for your records.

VALUATION EDUCATION

What Does a Business Valuation Calculator Calculate?

A business valuation calculator — sometimes called a company valuation calculator or business worth calculator — estimates the economic value of a business using one or more industry-standard methodologies. It gives you a defensible range, not a single number, since the "true" value of a business is what a specific buyer and seller agree on in a specific deal.

Key business valuation methods

  • Revenue Multiple: Annual revenue × a market multiple. Common for SaaS, high-growth, or low-profitability companies.
  • EBITDA Multiple: EBITDA × a market multiple. The most common method for profitable operating businesses.
  • Discounted Cash Flow (DCF): Present value of projected free cash flows plus terminal value, discounted at the required rate of return.
  • Asset-Based (Net Book Value): Total assets minus total liabilities. Used for asset-heavy, holding, or distressed businesses.
  • Market Comparables: A blended value from comparable transactions and public company multiples.
  • Industry Benchmark Multiple: The average multiple for your industry, used as a sanity check.

Who can use this business valuation calculator?

  • Business Owners: Get a baseline estimate before sale, recapitalization, or succession planning.
  • Buyers and Investors: Screen acquisition targets before paying for a full valuation.
  • Startup Founders: Benchmark value for fundraising or ESOP discussions.
  • M&A Advisors: Prepare a quick preliminary range for clients.
  • Accountants and CPAs: Combine with financial statements for estate, tax, or divorce planning.
METHODOLOGY

Business Valuation Calculator Methodology

MoneyTool uses documented valuation formulas. The calculator is transparent about what each method does and does not capture.

1. Revenue multiple valuation

Revenue Value = Annual Revenue × Revenue Multiplier

Used for early-stage, high-growth, or capital-light companies where revenue is the primary driver of value.

2. EBITDA multiple valuation

EBITDA Value = EBITDA × EBITDA Multiplier

The most widely used method for profitable operating businesses. Multiples vary by industry, size, growth, and customer concentration.

3. Asset-based (net book value)

NAV = Total Assets − Total Liabilities

Also called net book value or shareholders' equity. Useful for asset-heavy businesses, holding companies, or distressed scenarios.

4. Discounted cash flow (DCF)

DCF estimates value by projecting free cash flow (FCF) over an explicit forecast period (5 years in this calculator) and adding a terminal value:

Enterprise Value = Σ [FCFt ÷ (1 + r)t] + [Terminal Value ÷ (1 + r)n]

Where:

  • FCF₀ is approximated by EBITDA (a simplification; a rigorous DCF starts from free cash flow).
  • g is the growth rate.
  • r is the discount rate (WACC or required return), which must exceed g for a meaningful DCF result.
  • Terminal Value = FCFn+1 ÷ (r − g) (Gordon Growth Model).

When discount rate ≤ growth rate, the calculator shows a warning rather than a nonsensical or infinite value.

5. Market comparables

Market Comps Value = (Revenue Value + EBITDA Value) ÷ 2

A blended estimate that reduces reliance on a single method.

6. Industry comparison

The industry average multiple shown is the average for the selected industry based on the currently selected valuation method — so revenue-based valuations compare to the industry revenue multiple, and EBITDA-based valuations compare to the industry EBITDA multiple. This ensures an apples-to-apples comparison.

Important assumptions

  • The calculator uses simplified formulas and does not perform a full valuation engagement.
  • DCF uses EBITDA as a proxy for free cash flow; a rigorous analysis would adjust for capital expenditures, working capital, and taxes.
  • Industry multiples are indicative and do not reflect size, growth, or risk differences between companies.
  • Customer concentration, contract quality, key-person risk, and market conditions are not modeled.
  • This is an educational estimate, not a certified business valuation.
E-E-A-T & SOURCES

Business Valuation Information, Sources & Editorial Review

MoneyTool separates calculation results from financial education and valuation engagements. The calculator uses documented valuation formulas, while external valuation guidance should be verified with authoritative sources and licensed professionals.

Author and editorial responsibility

Methodology reviewed by the MoneyTool Finance Expert Team, a group of accountants, CPAs, and personal-finance analysts who maintain MoneyTool's calculator library and financial education content.

Last reviewed: | Revenue multiple, EBITDA multiple, DCF, asset-based, and comparables methods

Next review: When calculation logic, supported inputs, or relevant guidance changes.

Authoritative U.S. business valuation resources

  • U.S. Small Business Administration (SBA) — Business Guide: SBA Business Guide covers business planning, financing, and valuation-related considerations for small businesses.
  • U.S. Small Business Administration (SBA) — Loans and Funding: SBA Loan Programs covers SBA-backed financing for acquisitions, working capital, and expansion.
  • Internal Revenue Service (IRS) — Business Valuation for Tax Purposes: IRS Small Business Tax Center covers valuation considerations for estate, gift, and business taxes.
  • Internal Revenue Code §409A: IRS 409A Valuations guidance governs independent valuations of stock options and deferred compensation.
  • Financial Industry Regulatory Authority (FINRA): FINRA Investor Education provides practical guidance on evaluating investments and company fundamentals.
  • U.S. Securities and Exchange Commission (SEC) — Investor.gov: SEC Investor.gov provides investor education, including how public companies are valued.
  • Federal Trade Commission (FTC) — Business Guidance: FTC Business Guidance covers advertising, disclosure, and fair-dealing rules relevant to acquisitions and sales.
  • Consumer Financial Protection Bureau (CFPB) — Small Business Resources: CFPB Consumer Tools provides financial guidance and small business lending resources.

External resources are provided for education and verification. MoneyTool is not affiliated with or endorsed by the SBA, IRS, FINRA, SEC, FTC, CFPB, or any professional valuation body linked from this page.

BEST PRACTICES

Tips for Business Valuation

A single valuation number rarely tells the full story. Use multiple methods and sanity-check the result against industry benchmarks before making decisions.

Use Multiple Methods

Cross-check revenue, EBITDA, DCF, and asset-based values for a defensible valuation range.

Research Industry Multiples

Use industry-specific multiples from public comparables, M&A databases, or advisor surveys.

Consider Growth and Risk

Growth, margins, customer concentration, and recurring revenue all meaningfully move multiples.

Review Annually

Update your valuation annually for estate, tax, and succession planning purposes.

Consult a Professional

For transactions, tax filings, or litigation, engage a certified business valuation expert.

Use Accurate Financials

Use audited or reviewed financial statements — quality-of-earnings adjustments can change value by 20%+.

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FAQ

Frequently Asked Questions About Business Valuation

What is business valuation?

Business valuation is the process of estimating the economic value of a company. It is used for sales, acquisitions, investment, tax, and strategic planning purposes, and typically combines market, income, and asset-based approaches.

What are the main valuation methods?

The main business valuation methods are revenue multiples, EBITDA multiples, discounted cash flow (DCF), asset-based (net book value), and market comparables. Each has strengths depending on the company's stage, profitability, and asset structure.

What is a good EBITDA multiple?

EBITDA multiples vary by industry. Technology and SaaS companies commonly trade at 10–20x EBITDA, while retail and consumer businesses often trade at 3–7x. Always use industry-specific benchmarks.

How does a discounted cash flow valuation work?

DCF estimates value by projecting future free cash flows and discounting them back to today using a discount rate that reflects the investment risk. The result is a present value of the enterprise.

Which valuation method should I use?

Use revenue multiples for early-stage or high-growth companies, EBITDA multiples for profitable operating businesses, DCF for businesses with predictable cash flows, and asset-based methods for asset-heavy or distressed businesses.

Is this business valuation calculator free?

Yes. MoneyTool provides this business valuation calculator free for educational and planning use.

Can I save my valuation analysis?

Yes. Save Draft stores the calculator inputs in your browser. Print Results and Download PDF can be used to keep a copy of the displayed analysis.

LEGAL

Business Valuation Calculator Disclaimer

This business valuation calculator provides estimates for informational and educational purposes. It does not constitute financial, legal, tax, accounting, or investment advice, and it is not a certified business valuation. Actual business value depends on market conditions, financial audits, contracts, customer concentration, key-person risk, and other factors.

  • Estimates only: Results depend on the inputs and assumptions described in the methodology.
  • Not a certified valuation: For transactions, tax filings, or litigation, engage a certified business valuation professional.
  • Industry multiples are indicative: They are simplifications and do not reflect company-specific characteristics.
  • Verify before committing: Confirm valuation conclusions with financial statements and qualified advisors.
Last methodology review: . Calculator logic and educational content should be reviewed again whenever the methodology, supported inputs, or relevant external guidance changes.