Get a quick, ballpark value for your company — based on its revenue, profit, and the multiples typical for your industry.
Enter a few numbers for an instant valuation range. Nothing is stored.
Most small and mid-sized businesses are valued using multiples: a buyer applies a multiple to a key number — usually revenue or profit — to arrive at a price. This tool blends a revenue-based estimate and a profit-based estimate, then shows a range around that blend.
Three things drive the multiple more than anything else:
Profit (often measured as SDE for owner-operated businesses or EBITDA for larger ones) is the single biggest driver. A more profitable business earns a higher multiple.
Multiples vary widely by sector. Software and subscription businesses command high multiples because of recurring revenue and scalability; retail and manufacturing typically trade lower.
Buyers pay more for predictable, recurring revenue and less for businesses that depend on one customer, one owner, or one contract. Growth, margins, and customer mix all move the number.
It's a ballpark meant to orient you, not a formal valuation. Industry multiples are broad averages, and your specific business could be worth meaningfully more or less depending on its growth, margins, and risk profile. Use a professional appraisal before any transaction.
SDE (seller's discretionary earnings) is typically used for smaller, owner-operated businesses and adds back the owner's salary and perks. EBITDA is used for larger companies with a management team. Enter whichever best reflects your business's true earning power.
Revenue and profit each tell part of the story. A high-revenue, low-profit business and a lean, profitable one can be worth very different amounts. Blending the two gives a more balanced starting estimate than either alone.
Recurring revenue, strong and growing margins, a diversified customer base, and a business that runs without the owner. Reducing key-person and customer-concentration risk often does more for value than simply increasing sales.
This estimator provides a general, simplified estimate for educational purposes only. It is not a formal business appraisal and is not legal or financial advice. No attorney-client relationship is formed by using this tool.
FirmLift Interactive Tool · Demonstration