How to use this calculator
Enter annual revenue, net profit, EBITDA, an industry multiple, debt, and cash reserves. The calculator estimates enterprise value, net business value, and alternative valuation views.
#703 · Business Tool
Small Business Valuation Calculator
Use this small business valuation calculator to estimate business value from EBITDA, revenue, profit, industry multiple, debt, and cash. It compares valuation methods and highlights acquisition readiness.
Calculator
Business inputs$
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What the result means
The valuation is a directional estimate, not a formal appraisal. Stronger EBITDA, recurring revenue, lower debt, and clean financial records usually support higher valuation multiples.
Enterprise Value = EBITDA × Industry Multiple. Net Business Value = Enterprise Value − Debt + Cash.
Benchmark: EBITDA margin above 25% is excellent, 15% to 25% is good, 10% to 15% is average, and below 10% is weak.
Example calculation
If EBITDA is $100,000 and the selected multiple is 4x, enterprise value is $400,000. With $50,000 debt and $25,000 cash, net value is $375,000.
Tips for better results
- Improve EBITDA before pursuing a sale.
- Reduce owner dependency and document repeatable processes.
- Lower debt to improve buyer confidence.
FAQ
How much is my small business worth?
A common estimate uses EBITDA multiplied by an industry multiple, then adjusts for debt and cash.
What multiple should I use to value a business?
The multiple depends on industry, size, growth, profitability, recurring revenue, and buyer demand.
How do buyers value small businesses?
Buyers often compare EBITDA, revenue quality, debt, customer concentration, and transferability.
What increases business valuation?
Higher profit margin, recurring revenue, documented systems, lower debt, and stable growth can increase valuation.
Can revenue alone determine business value?
Revenue alone is not enough because profitability, cash flow, and risk strongly affect value.
Related calculators
Business decision modules
| Module | Included |
|---|---|
| Main Result | Yes |
| Summary | Yes |
| Interpretation | Yes |
| Status | Yes |
| Health Score | Yes |
| Recommendation | Yes |
| Industry Benchmark | Yes |
| Example Calculation | Yes |
| FAQ 5 | Yes |
| Related Calculators 4 | Yes |
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