Business Valuation Calculator
Estimate business value using SDE multiple, revenue multiple, and DCF methods.
Inputs
Results
SDE Multiple Valuation
$450,000.00
≈ 11 Teslas
How to Use This Calculator
- Enter your annual net profit and select the industry for the appropriate earnings multiplier.
- Input total business assets and outstanding liabilities.
- Add annual owner compensation above market rate (buyer would replace this cost).
- Review the three valuation outputs: Asset-Based, Earnings-Multiple, and Blended Valuation.
- Use the Seller's Discretionary Earnings figure as a starting point for negotiations.
How the result changes with Seller's Discretionary Earnings
| Seller's Discretionary Earnings | SDE Multiple Valuation |
|---|---|
| $100,000,000.00 | $300,000,000.00 |
| $350,000,000.00 | $1,050,000,000.00 |
| $650,000,000.00 | $1,950,000,000.00 |
| $900,000,000.00 | $2,700,000,000.00 |
What each input means
- Annual Revenue
- Total annual revenue.
- Seller's Discretionary Earnings
- Net income + owner salary + add-backs.
- Revenue Multiple
- Industry revenue multiple (typically 0.5-3x).
- SDE Multiple
- SDE multiple (typically 2-4x for small businesses).
- Discount Rate
- Required rate of return for DCF calculation.
- Expected Growth Rate
- Expected annual earnings growth rate.
How this is calculated
Worked example, using the default values
- Identify Input Parameters4 parametersAnnual Revenue = 500000, Seller's Discretionary Earnings = 150000, Revenue Multiple = 1, SDE Multiple = 3 = 6 input(s) provided
- Calculate SDE Multiple ValuationSDE Multiple Valuation450000 = $450,000
- Calculate Revenue Multiple ValuationRevenue Multiple Valuation500000 = $500,000
- Calculate DCF Valuation1575000 = $1,575,000
Engine last updated . Checked against 2 independently-derived tests — how we verify calculators.
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