STARTUP · VALUATION
Business Valuation Calculator
Estimate business worth using revenue, SDE, and EBITDA multiples with a blended valuation range.
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Result
Method comparison (mid estimate)
Each method's mid-point valuation side by side.
Per-method valuation range
Low to high band per method, marker at mid.
How to use it
- Enter annual revenue with a revenue multiple, SDE with an SDE multiple, and EBITDA with an EBITDA multiple. Revenue multiples tend to matter more for growth-heavy businesses, SDE is common for owner-operated businesses under roughly $5 million in revenue, and EBITDA is the cleaner standard for larger firms.
- Read the low, mid, and high value for each method plus the blended range. Large gaps between methods usually mean buyers will focus on quality of earnings, owner dependence, or inconsistent margin performance instead of accepting the most generous headline.
- Treat the blended mid-range as a negotiation anchor, not a guaranteed sale price. If revenue-based value is far above SDE or EBITDA value, the market is likely to discount the story unless recurring revenue, margins, and risk profile genuinely support the higher multiple.
- Use the range to prepare for a sale, partner buyout, or capital raise. If you want a better multiple, focus on recurring revenue mix, customer concentration, clean add-backs, and margin consistency before arguing the price itself.
- Re-run after meaningful growth, margin expansion, or customer-risk changes, and at least quarterly during sale prep. Track value using both improved financials and stable multiples so you can separate operational progress from market mood.
Questions people usually ask
What are the three valuation methods?
Revenue Multiple values your business as a multiple of annual revenue. SDE Multiple uses owner earnings (common for sub-$5M businesses). EBITDA Multiple is the mid-market standard for larger businesses.
How do I choose the right multiple?
Multiples vary by industry, growth rate, and profitability. SaaS businesses may see 5-10× revenue multiples while service businesses see 0.5-1.5×. Research comparable recent sales in your industry.
What is SDE (Seller's Discretionary Earnings)?
SDE = net income + owner salary + owner perks + one-time expenses + depreciation. It represents total economic benefit to a working owner.
Why does the blended estimate average all methods?
Using multiple methods reduces the risk of one metric distorting the picture. The blended range gives a more robust estimate than any single method alone.
Is this tool free and private to use?
Yes. AI Biz Hub tools are free, no-signup browser tools. Inputs stay in your browser unless you choose to share a URL.
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