#773 · Business Tool

Agency Valuation Calculator

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.

Calculator

Decision inputs
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Ad space

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.

What the result means

The valuation is EBITDA multiplied by the selected multiple. Higher margin, growth, and recurring revenue support a stronger valuation range.

EBITDA = Annual Revenue × EBITDA Margin; Valuation = EBITDA × EBITDA Multiple

This is not a formal appraisal. Actual deal value depends on buyer type, client concentration, contracts, management team, and diligence findings.

Example calculation

An agency with $500,000 revenue, 20% EBITDA margin, and a 5x multiple has $100,000 EBITDA and an estimated value of $500,000.

Tips for better results

  • Increase recurring revenue before selling.
  • Reduce dependence on one or two major clients.
  • Document processes and management depth for buyer confidence.

FAQ

How much is my marketing agency worth?

Estimate EBITDA from revenue and margin, then multiply by an appropriate agency valuation multiple.

What EBITDA multiple do agencies sell for?

Smaller agencies often sell at lower multiples, while growing agencies with recurring revenue and strong margins can command higher multiples.

How do buyers value digital agencies?

Buyers usually evaluate EBITDA, growth, client retention, recurring revenue, concentration risk, and operational maturity.

What increases agency valuation?

Recurring revenue, strong EBITDA margin, low churn, diversified clients, and consistent growth can increase valuation.

How much can I sell my agency for?

The likely sale price depends on EBITDA and multiple, adjusted for growth quality, contracts, risks, and buyer demand.

Decision module

MetricHow to use it
EBITDAProfit base commonly used for agency valuation.
Valuation RangeLow, base, and high estimate around your chosen multiple.
Readiness ScoreGrowth, margin, and recurring revenue quality signal.

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