Business Valuation Calculator

The Business Valuation Calculator estimates what a company is worth using common valuation methods, giving owners, buyers, and investors a defensible starting figure. Depending on the inputs you provide — revenue, earnings (often EBITDA or seller's discretionary earnings), assets, and an industry multiple — it can apply approaches such as a multiple of earnings, discounted cash flow, or asset-based valuation to produce an estimated enterprise or equity value.

Different methods suit different businesses. A multiple-of-earnings approach multiplies normalized profit by an industry-specific factor and works well for established, profitable companies, while asset-based valuation suits asset-heavy or distressed firms by summing the fair value of assets minus liabilities. Discounted cash flow projects future cash flows and discounts them to present value, ideal for businesses with predictable growth. Seeing how the methods diverge highlights which assumptions drive the number.

Owners use valuation to prepare for a sale, bring on partners, raise capital, set buy-sell agreements, or simply benchmark progress. Buyers use it to anchor negotiations and avoid overpaying. The result feeds directly into the equity line of a personal Net Worth Calculation for an owner-operator, and pairs with the Budget Calculator and broader financial planning when proceeds from a sale will fund other goals.

Treat any calculator output as a range and a conversation starter, not a precise price — the actual sale value depends on negotiation, market conditions, buyer synergies, and due diligence. Normalize earnings first by removing one-time items and adjusting owner compensation to market rates, since unadjusted numbers distort multiples badly. For high-stakes decisions, validate the estimate with comparable recent sales in your industry and consult a professional appraiser or broker.