Financial Inputs
Valuation Methods
EBITDA Multiple
$1,000,000.00
Revenue Multiple
$1,500,000.00
Asset-Based
$350,000.00
Earnings-Based
$1,800,000.00
Blended Valuation Range
$1,218,333.33 – $1,648,333.33
Based on average of EBITDA, revenue, and earnings methods ±15%
Frequently Asked Questions
What multiple should I use to value my business?
Multiples vary widely. Small businesses (<$1M EBITDA) trade at 2–4×. Mid-market at 5–8×. SaaS companies at 5–15× ARR. The multiple depends on growth rate, industry, recurring revenue, customer concentration, and owner dependency. Higher growth = higher multiples.
Which valuation method is most accurate?
No single method is definitive. EBITDA multiples are most common for profitable businesses. Revenue multiples work for pre-profit or high-growth companies. Asset-based valuation suits asset-heavy businesses (real estate, manufacturing). Using multiple methods and averaging gives a more realistic range.
How do I increase my business valuation?
Key value drivers: (1) Recurring revenue reduces risk, (2) Growth rate — faster growth = higher multiples, (3) Reduce owner dependency, (4) Diversify customer base (no single customer >15%), (5) Strong margins, (6) Clean books and processes, (7) A strong management team.
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