Business Valuation Calculator — Free 4-Method Estimate with EBITDA, SDE & DCF 2026
Your business generates $1.5M in annual revenue and $1.2M in EBITDA. A broker tells you it’s worth $4.2M. A buyer offers $2.8M. An online calculator gives you $1.1M. All three numbers come from real formulas — they just use different methods. Revenue multiples, EBITDA multiples, SDE multiples, and discounted cash flow (DCF) can produce wildly different valuations for the same business. The right answer depends on which method buyers in your sector actually use.
This calculator runs all four methods simultaneously — showing individual valuations, a full range from low to high, and a consensus midpoint. Enter your financials and business type to see what your business is worth using the same frameworks buyers, lenders, and M&A advisors apply.
Business Valuation Calculator
4 methods: Revenue multiple, EBITDA, SDE & DCF — instant estimate for small to mid-size businesses
Enter your revenue and financials to see estimated business value
What This Business Valuation Calculator Shows
This free business valuation calculator uses revenue, EBITDA, SDE, and DCF methods to estimate your business value instantly.
Estimated Value Range and Consensus Midpoint
The primary output is a value range — low estimate to high estimate — with a consensus midpoint that averages the four method outputs. No single valuation method is correct for every business. Showing the range tells you the realistic spread you’d encounter in an actual sale process. The consensus midpoint is the most defensible starting point for negotiations.
Valuation by Method — All Four Simultaneously
Revenue Multiple: Business value = Annual Revenue × industry-specific revenue multiple. Used for high-growth or pre-EBITDA businesses. SaaS companies may use 4× revenue; service businesses 0.75× revenue.
EBITDA Multiple: Business value = EBITDA × industry-specific EBITDA multiple. The workhorse method for profitable businesses. Most common in lower-middle-market M&A ($1M–$50M enterprise value). Multiples range from 3× for simple service businesses to 10× for SaaS with strong retention.
SDE Multiple: Business value = SDE × SDE multiple. Seller’s Discretionary Earnings = Net profit + owner’s salary + non-cash charges + one-time expenses. Used for small owner-operated businesses (under $2M EBITDA) where the owner’s compensation is a core part of the business’s earnings picture.
DCF (5-Year): Discounted Cash Flow projects 5 years of future cash flows at your entered growth rate and discounts them to present value using your selected discount rate (8% low risk / 15% typical / 25% high risk). Most useful as a cross-check, not a primary method, for small businesses.
Key Metrics Panel
Below the four valuations, the tool shows your profit margin, EBITDA margin, SDE amount, and payback period (years to recoup the asking price from net profit). Payback period is a critical buyer metric — most acquirers want payback under 5 years. A 222-year payback signals the asking price is disconnected from actual earnings.
Small Business Valuation Calculator — Estimate Your Business Value Using 4 Methods
How to Calculate Business Valuation Using Revenue Multiple
Value = Annual Revenue × Revenue Multiple
Revenue multiples by business type (US market, 2026):
| Business Type | Revenue Multiple Range |
|---|---|
| SaaS / Tech | 3×–8× revenue |
| Healthcare | 1×–2× revenue |
| E-commerce | 0.5×–1.5× revenue |
| Service | 0.5×–1× revenue |
| Manufacturing | 0.4×–0.8× revenue |
| Retail | 0.3×–0.6× revenue |
Revenue multiples are most appropriate when EBITDA is negative, minimal, or not representative of the business’s earning potential. A SaaS company with $3M ARR and 120% net revenue retention is worth far more than its EBITDA suggests — revenue multiple reflects growth value rather than current earnings.
EBITDA Business Valuation Calculator — The Most Common Method
Value = EBITDA × EBITDA Multiple
EBITDA = Earnings Before Interest, Taxes, Depreciation, and Amortization. This is the most commonly used valuation metric in private M&A for businesses generating meaningful profit. EBITDA multiples by business type (US market, 2026):
| Business Type | EBITDA Multiple Range |
|---|---|
| SaaS / Tech | 8×–15× |
| Healthcare | 4×–8× |
| Manufacturing | 3×–6× |
| Service | 3×–5× |
| E-commerce | 3×–5× |
| Retail | 2×–4× |
The multiple is primarily driven by three factors: growth rate (higher growth = higher multiple), revenue quality (recurring vs. one-time), and customer concentration (20%+ from one customer compresses the multiple). A service business growing at 25%/year warrants a 5× EBITDA multiple; the same business at 2% growth warrants 3×.
SDE Business Valuation Calculator — For Owner-Operated Businesses
This small business valuation calculator section uses SDE — the most appropriate method for owner-operated businesses under $2M EBITDA.
Value = SDE × SDE Multiple
SDE = Net Profit + Owner’s Annual Salary + Non-Cash Charges (depreciation/amortization) + One-Time or Non-Recurring Expenses
SDE is used for small owner-operated businesses — typically under $2M EBITDA — where the owner is also the primary operator and their compensation is embedded in the earnings. A dentist who owns their practice and pays themselves $250,000 is effectively taking EBITDA plus salary as their total return. SDE captures this combined owner benefit.
SDE multiples for small businesses typically range from 2×–4× depending on business type, growth, transferability, and whether revenue is recurring. A service business with $300,000 SDE at 2.5× = $750,000 valuation.
Why SDE matters for small business buyers: When an acquirer buys a business at a 3× SDE multiple, they’re paying 3 years of owner earnings. If they replace the owner with a manager at $100,000/year, their return on investment improves — this is the acquisition arbitrage that small business buyers seek.
DCF Business Valuation Calculator — Present Value of Future Cash Flows
DCF Value = Sum of (Year 1–5 Free Cash Flows × Discount Factor) + Terminal Value
DCF projects your net profit forward at the entered growth rate for 5 years, then calculates a terminal value (ongoing business value beyond year 5), and discounts everything back to today’s dollars using the selected discount rate.
Discount rates in the tool:
- 8% (Low risk): Stable, mature business, recurring revenue, low customer concentration
- 15% (Typical): Average small-to-midsize business risk profile
- 25% (High risk): High customer concentration, owner-dependent, volatile revenue, startup-stage
DCF is highly sensitive to growth rate and discount rate assumptions. A 1% change in discount rate can shift DCF value by 15%–25%. For small businesses, DCF is most useful as a cross-check rather than the primary valuation method — the inputs require too many assumptions about future performance.
Business Valuation by Industry — 2026 Multiples
HVAC Business Valuation Calculator
HVAC businesses are highly sought-after acquisition targets in 2026 due to strong recurring maintenance revenue, essential service nature, and demographic-driven demand growth. Valuation multiples:
Revenue multiple: 0.7×–1.2× (higher end for businesses with strong maintenance contract revenue) EBITDA multiple: 4×–7× (well above average service business due to recurring revenue premium) SDE multiple: 2.5×–4× depending on size and recurring contract base
Key value drivers for HVAC: percentage of revenue from service agreements vs. one-time installations, technician count and capacity, geographic coverage area, and commercial vs. residential mix (commercial carries higher multiples). An HVAC business with 40%+ recurring maintenance revenue will value at 1.0×+ revenue versus 0.7× for a pure installation shop.
Construction Business Valuation Calculator
Construction businesses are valued conservatively due to project-based revenue concentration, thin margins, and bonding/licensing dependencies:
Revenue multiple: 0.3×–0.6× EBITDA multiple: 2.5×–4.5× (lower than most industries) SDE multiple: 2×–3.5×
Key value drivers: backlog as a percentage of annual revenue (12+ months of backlog commands a premium), bonding capacity, specialty vs. general contracting (specialty trades command 20%–40% higher multiples), and owner dependency (if the business can’t run without the founder, expect a 20%–30% discount).
General contractors: 3×–4× EBITDA. Specialty trades (electrical, plumbing, HVAC): 4×–6× EBITDA. Construction management firms with recurring commercial relationships: 4×–5× EBITDA.
Dental Business Valuation Calculator
Dental practices use practice-specific valuation metrics. In 2026, dental practice multiples are strong due to private equity consolidation:
Revenue multiple: 0.6×–0.9× (general dentistry) — 0.7×–1.1× (specialty: ortho, oral surgery) EBITDA multiple: 4×–7× (higher for multi-location practices and specialties) SDE multiple: 2.5×–4× for single-practice
Key dental-specific factors: payer mix (fee-for-service vs. insurance — FFS carries 20%+ premium), patient base demographics, associate dentist coverage, technology level (CBCT, digital impressions), and physical space capacity. A dental practice with strong FFS mix, an associate covering 30%+ of production, and growth trajectory will value toward 5×–6× EBITDA.
Retail Business Valuation Calculator
Retail businesses face the most compressed valuations in 2026 due to e-commerce pressure and thin margins:
Revenue multiple: 0.3×–0.6× (brick-and-mortar) — 0.5×–1.5× (omnichannel with strong online) EBITDA multiple: 2×–4× SDE multiple: 1.5×–3×
Key value drivers: lease terms and transferability, customer loyalty/repeat purchase rate, brand recognition, online presence, and inventory quality. A retail business with strong owned brand equity, online channel (30%+ of revenue), and long-term lease in a high-traffic location will value toward the top of the range.
SaaS / Tech Business Valuation Calculator
SaaS businesses command the highest multiples due to recurring revenue, scalability, and high gross margins:
Revenue multiple (ARR): 3×–8× for private companies (public SaaS multiples compressed from 2021 highs) EBITDA multiple: 8×–15× for profitable SaaS Net Revenue Retention (NRR): The most important SaaS metric — above 110% NRR commands premium multiples; below 90% NRR discounts significantly
The Rule of 40: growth rate + profit margin ≥ 40% is the key health benchmark. SaaS companies meeting Rule of 40 with strong NRR warrant 6×+ revenue multiples from strategic buyers. Below Rule of 40 with declining NRR: 3×–4× revenue.
Service Business Valuation Calculator
Service businesses (agencies, consulting, professional services) are valued on earnings quality and client concentration:
Revenue multiple: 0.5×–1× (lower for project-based, higher for retainer/recurring) EBITDA multiple: 3×–6× (higher for businesses with recurring retainer revenue) SDE multiple: 2×–3.5×
Key value drivers: revenue concentration (no single client over 20% of revenue), contract length and stickiness, key person risk, and gross margin (30%+ gross margin agencies command higher multiples than thin-margin contract staffing).
Shark Tank Business Valuation Calculator — How the Show Calculates Value
How Shark Tank Valuations Work
The most searched valuation-related question after small business valuation is how Shark Tank calculates business value — and the answer reveals an important concept: post-money valuation.
When an entrepreneur says “I’m asking for $200,000 for 10% equity,” they’re implying a post-money valuation of $2,000,000 ($200,000 ÷ 10% = $2,000,000). This is not necessarily what the business is actually worth based on earnings — it’s what the entrepreneur is valuing the entire company at in exchange for the investor’s capital.
Shark Tank valuation formula: Post-money valuation = Investment Amount ÷ Equity Percentage $200,000 ÷ 0.10 = $2,000,000 implied valuation
When sharks counter-offer — “I’ll give you $200,000 for 25%” — they’re implying a valuation of $800,000 ($200,000 ÷ 25%). The negotiation is really about what the business is worth, expressed through equity percentage.
Why Shark Tank Valuations Often Differ from Earnings-Based Methods
Entrepreneurs on Shark Tank typically set valuations based on what they need to raise and what percentage they’re willing to give up — not on EBITDA multiples. A business with $100,000 in net profit asking for $1M at 10% (implying $10M value) is asking for a 100× earnings multiple. Most earnings-based valuations would produce $300,000–$500,000 for the same business.
The sharks — as professional investors — immediately calculate the implied multiple and compare it to what they’d pay in a real market transaction. Their counter-offers compress the valuation toward realistic earnings multiples. This calculator uses the same 4 earnings-based methods the sharks actually use to determine what they’d pay.
Multi-Currency and International Business Valuation
How Country Affects Business Valuation Multiples
Business valuation multiples are not universal — they reflect local M&A market conditions, buyer competition, and capital availability. The same business generating $1M EBITDA in the US, UK, and Australia will be valued differently because the acquirer pool, transaction volume, and market maturity differ.
General guide for market adjustments:
United States (US): Highest multiples globally for most business types. Active private equity market, strong M&A transaction volume, most liquid small business market. Tool defaults to US multiples.
United Kingdom (UK): Generally 10%–25% below US multiples for equivalent businesses. Smaller buyer pool, different financing structures. Service businesses: 2.5×–4× EBITDA. SaaS: 5×–10× revenue.
Australia: Similar to UK — 10%–20% below US multiples. Strong appetite for trades, healthcare, and professional services. Service businesses: 2.5×–4× EBITDA.
Canada: Closely tracks US multiples for most sectors. Ontario/BC businesses with US market access often command near-US multiples.
Disclaimer on International Multiples
The multiples in this calculator are based on US M&A market data. For UK, Australian, or Canadian business valuations, apply a 10%–25% discount to the revenue and EBITDA multiples shown, or consult a local business broker or M&A advisor with region-specific comparable transaction data.
Real Business Valuation Scenarios
Scenario 1: Small Service Business — The SDE Method Wins
John owns a landscaping business: $1.2M revenue, $180,000 net profit, $85,000 owner salary. EBITDA: $280,000. SDE: $280,000 + $85,000 = $365,000.
Revenue multiple (0.6×): $720,000. EBITDA multiple (3.5×): $980,000. SDE multiple (2.5×): $912,500. DCF (15% discount, 8% growth, 5yr): $890,000.
Consensus range: $720,000–$980,000. Midpoint: $876,000.
For a buyer replacing John with a $65,000 manager: adjusted SDE = $365,000 − $65,000 = $300,000 adjusted earnings. At 3× adjusted: $900,000 — consistent with consensus.
Verdict: SDE method is most appropriate for this owner-operated business. Consensus midpoint of $876K is defensible as asking price.
Scenario 2: SaaS Business — Revenue Multiple Wins
Maria’s SaaS company: $500,000 ARR, 85% gross margin, 115% NRR, 30% YoY growth. EBITDA: $50,000 (reinvesting in growth).
Revenue multiple (5× for strong SaaS): $2,500,000. EBITDA multiple (10×): $500,000 — understates value because low EBITDA reflects growth investment. SDE: $120,000 × 3× = $360,000 — not appropriate for SaaS. DCF (8% discount, 30% growth): $1,800,000.
Verdict: Revenue multiple is the correct primary method. SaaS metrics (NRR 115%, 30% growth, Rule of 40 = 38%) support 5× ARR = $2.5M. EBITDA method dramatically understates value for growth-stage SaaS.
Scenario 3: HVAC Business With Recurring Revenue
David’s HVAC company: $2.8M revenue, 42% from maintenance contracts, $450,000 EBITDA, $130,000 owner salary. Growing 15%/year.
Revenue multiple (1.0× for recurring-heavy HVAC): $2,800,000. EBITDA multiple (5.5× for high recurring + growth): $2,475,000. SDE ($450K + $130K = $580K × 3×): $1,740,000. DCF (12% discount, 15% growth): $2,100,000.
Consensus range: $1,740,000–$2,800,000. Midpoint: $2,279,000.
With 42% recurring revenue and 15% growth, the EBITDA multiple of 5.5× and revenue multiple of 1.0× are both defensible. A PE-backed acquirer would pay toward the EBITDA multiple; an individual buyer would target toward the SDE method.
Verdict: Ask price $2.4M–$2.6M is supportable. Expect $2.1M–$2.3M in a competitive process.
Frequently Asked Questions
What is a business valuation calculator?
A business valuation calculator estimates what a business is worth using one or more financial methods — revenue multiples, EBITDA multiples, SDE multiples, or discounted cash flow (DCF) analysis. A complete calculator runs all four methods simultaneously and shows a value range with a consensus midpoint, since no single method is correct for every business type or situation.
How to calculate business valuation?
A business valuation is calculated using four methods: revenue multiple (revenue × industry multiple), EBITDA multiple (EBITDA × multiple), SDE multiple (seller’s discretionary earnings × multiple), and discounted cash flow (DCF), which estimates the present value of future cash flows.
The four methods are:
- Revenue multiple
- EBITDA multiple
- SDE multiple
- Discounted cash flow (DCF)
What is SDE in business valuation?
SDE (Seller’s Discretionary Earnings) = Net Profit + Owner’s Salary + Non-Cash Charges + One-Time Expenses. It represents the total financial benefit the owner extracts from the business annually. SDE is used to value small owner-operated businesses where EBITDA understates the business’s true earnings because the owner’s compensation is embedded in operating expenses.
What is EBITDA and how is it used in business valuation?
EBITDA = Earnings Before Interest, Taxes, Depreciation, and Amortization. It measures operating profitability independent of financing structure and accounting choices. In business valuation, EBITDA is multiplied by an industry-specific multiple to estimate enterprise value. Typical EBITDA multiples for private businesses range from 3× (small service businesses) to 10×+ (SaaS with strong metrics).
How does Shark Tank calculate business valuation?
Shark Tank valuations use post-money valuation: Investment Amount ÷ Equity Percentage = Implied Company Valuation. $200,000 for 10% equity implies a $2,000,000 valuation. Sharks evaluate this against earnings-based methods (EBITDA and revenue multiples) to determine if the entrepreneur’s valuation is realistic. Most counter-offers from sharks compress the valuation toward what an earnings-based method would produce.
What is a good EBITDA multiple for a business?
A good EBITDA multiple depends on your industry and business characteristics. Service businesses: 3×–5×. Healthcare: 4×–8×. Manufacturing: 3×–6×. SaaS: 8×–15×. Retail: 2×–4×. Factors that increase your multiple: high recurring revenue, strong growth rate, low customer concentration, management team independent of the owner. Factors that decrease your multiple: high customer concentration, owner-dependency, declining revenue, low gross margins.
How do business valuation multiples differ by country?
US multiples are typically the highest globally due to the most active private M&A market and largest buyer pool. UK and Australian multiples are generally 10%–25% below US equivalents for the same business type. The multiples in this calculator are based on US M&A market data — apply a discount for international markets or consult a local M&A advisor with regional comparable transaction data.
Data Sources
Accuracy & Verification
EBITDA and revenue multiples sourced from BizBuySell 2025 Insight Report, Axial private M&A database, and SaaS Capital 2025–2026 private SaaS benchmark data. SDE multiples based on Business Reference Guide (Bizcomps) 2025 edition for small business transactions. DCF discount rate guidance from Duff & Phelps 2025 Cost of Capital Navigator. HVAC and construction multiples from industry-specific M&A advisory data, April 2026. Last verified: April 2026.
This tool provides estimates for educational and informational purposes only. Results do not constitute a formal business appraisal, financial, legal, or investment advice. Actual business value depends on assets, contracts, customer concentration, market conditions, due diligence findings, and deal structure. Consult a Certified Business Valuator (CBV), Certified Valuation Analyst (CVA), or licensed M&A advisor for transaction-grade valuations.
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