How to use this calculator
- Enter annual revenue and EBITDA margin to estimate profit.
- Choose an EBITDA multiple that reflects agency quality and buyer demand.
- Add growth and recurring revenue share to evaluate acquisition readiness.
Estimate agency valuation using annual revenue, EBITDA margin, EBITDA multiple, growth rate, and recurring revenue share. Use the valuation range and readiness score to assess exit potential.
The valuation is EBITDA multiplied by the selected multiple. Higher margin, growth, and recurring revenue support a stronger valuation range.
This is not a formal appraisal. Actual deal value depends on buyer type, client concentration, contracts, management team, and diligence findings.
An agency with $500,000 revenue, 20% EBITDA margin, and a 5x multiple has $100,000 EBITDA and an estimated value of $500,000.
Estimate EBITDA from revenue and margin, then multiply by an appropriate agency valuation multiple.
Smaller agencies often sell at lower multiples, while growing agencies with recurring revenue and strong margins can command higher multiples.
Buyers usually evaluate EBITDA, growth, client retention, recurring revenue, concentration risk, and operational maturity.
Recurring revenue, strong EBITDA margin, low churn, diversified clients, and consistent growth can increase valuation.
The likely sale price depends on EBITDA and multiple, adjusted for growth quality, contracts, risks, and buyer demand.
| Metric | How to use it |
|---|---|
| EBITDA | Profit base commonly used for agency valuation. |
| Valuation Range | Low, base, and high estimate around your chosen multiple. |
| Readiness Score | Growth, margin, and recurring revenue quality signal. |