Business Asset Appraisal Calculator
Estimate business value using asset-based, earnings-based, and revenue-based approaches with goodwill.
Inputs
Results
Estimated Business Value
$372,500.00
≈ 9 Teslas
How to Use This Calculator
- Enter Annual Revenue and Annual Earnings (SDE — seller's discretionary earnings).
- Input Total Assets and Total Liabilities to calculate book value.
- Set Industry Multiple — the typical SDE multiple for your business sector (e.g. 2–4x for service businesses).
- Set Goodwill Factor % — the premium above asset value from brand, customer relationships, and processes.
- Review Estimated Business Value alongside Earnings-Based and Revenue-Based values for comparison.
- Use Book Value as a floor — a healthy business should be worth more than its liquidation value.
How the result changes with Industry Multiple
| Industry Multiple | Estimated Business Value |
|---|---|
| 1.95 | $259,625.00 |
| 5.57 | $648,775.00 |
| 9.93 | $1,117,475.00 |
| 14 | $1,555,000.00 |
What each input means
- Annual Earnings (SDE)
- Seller's discretionary earnings.
- Industry Multiple
- Typical SDE multiple for the industry.
- Goodwill Factor
- Goodwill as % of earnings value.
How this is calculated
Worked example, using the default values
- Identify Input Parameters4 parametersAnnual Revenue = 500000, Annual Earnings (SDE) = 100000, Total Assets = 300000, Total Liabilities = 100000 = 6 input(s) provided
- Calculate Estimated Business ValueEstimated Business Value = weightedValue + goodwill372500 = $372,500
- Calculate Book ValueBook Value = totalAssets - totalLiabilities200000 = $200,000
- Calculate Earnings-Based ValueEarnings-Based Value = annualEarnings * industryMultiple300000 = $300,000
Engine last updated . Checked against 2 independently-derived tests — how we verify calculators.
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