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Business Valuation Calculator
Apply user-selected low and high market multiples to normalized annual earnings.
Business Valuation Calculator
Enter your numbers and the result updates straight away.
Outputs
Planning estimate only. Verify assumptions before making a financial decision.
$300,000 of normalized SDE at 2.5x–3.5x implies an indicative value range of $750,000–$1,050,000.
How this calculation works
The calculator multiplies normalized earnings by user-entered market multiples. It does not supply proprietary transaction multiples or constitute an appraisal.
How to interpret the result
The output is only as credible as the earnings adjustments and multiple assumptions. Validate both against comparable transactions and business-specific risks.
Limitations
Results are educational planning estimates. They do not include every tax, legal, accounting, financing, or business-specific consideration and are not professional advice.
Formula and example
$300,000 of normalized SDE at 2.5x–3.5x implies an indicative value range of $750,000–$1,050,000.
Common use cases
- Screen an asking price.
- Compare valuation scenarios.
- Prepare for broker or lender discussions.
Business Valuation Calculator FAQ
Where should valuation multiples come from?
Use relevant comparable transactions, broker evidence, industry data, and professional judgment matched to size, geography, growth, and risk.
Should inventory be added to the valuation?
That depends on transaction convention and the normalized working-capital mechanism. Avoid adding assets twice.
How is Valuation calculated?
The calculator multiplies normalized earnings by user-entered market multiples. It does not supply proprietary transaction multiples or constitute an appraisal.
How should I interpret the result?
The output is only as credible as the earnings adjustments and multiple assumptions. Validate both against comparable transactions and business-specific risks.