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Business Valuation Calculator

Estimate business value using DCF, comparable multiples, and asset-based approaches.

Assumptions

Current annual free cash flow ($)
10%
2.5%
12%
Total debt minus cash (negative = net cash position)

Business Valuation Calculator

Whether you're buying, selling, or seeking funding, understanding your business's value is critical. Our free business valuation calculator uses industry-standard methods including DCF (Discounted Cash Flow), revenue multiples, EBITDA multiples, and comparable company analysis to estimate your company's worth.

Valuation Methods Explained

Discounted Cash Flow (DCF) is the gold standard for valuing established businesses with predictable cash flows. It projects future free cash flows and discounts them back to today's dollars using your weighted average cost of capital (WACC). This method is preferred by investment bankers, private equity firms, and professional appraisers.

Revenue multiples are commonly used for SaaS, tech startups, and high-growth companies that aren't yet profitable. Typical multiples range from 2-10x annual recurring revenue (ARR), depending on growth rate, retention, and market conditions. Our calculator helps you benchmark against industry standards.

EBITDA multiples work well for profitable, mature businesses. Typical multiples range from 3-8x EBITDA, varying by industry, size, and growth prospects. Manufacturing, distribution, and service businesses are often valued this way.

When to Get a Professional Valuation

While our calculator provides a solid estimate, consider hiring a professional business valuator (CBV in Canada) for: selling your business, buying a business, shareholder disputes, estate planning, divorce proceedings, or seeking institutional investment. Professional valuations cost $5,000-$50,000+ depending on complexity.

Factors That Impact Value

Your valuation depends on: revenue growth rate, profit margins, customer concentration, recurring revenue percentage, market size and trends, competitive advantages, management team strength, and current market conditions. Adjust our calculator's inputs to model different scenarios and see how changes impact value.