Business Valuation Calculator — EBITDA, Revenue & Earnings Methods
Get a multi-method estimate of your business value: enter financials and industry multiples to see valuations by EBITDA multiple, revenue multiple, and P/E ratio — plus a simple average across all three approaches.
Simple average of EBITDA, revenue and earnings-based estimates
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EBITDA valuation
400,000 × 5 = 2,000,000 - 2
Revenue valuation
2,000,000 × 1.5 = 3,000,000 - 3
Earnings (P/E) valuation
280,000 × 15 = 4,200,000 - 4
Average valuation
(2,000,000 + 3,000,000 + 4,200,000) ÷ 3 = 3,066,667Simple average of the three valuation methods.
How does this calculator work?
Three methods estimate business value: EBITDA × multiple (most common for profitable SMEs), revenue × multiple (used for growth-stage businesses), and net income × P/E. Industry multiples for 2025 are provided as editable defaults. The calculator averages all three to give a balanced range.
Formula
How this is calculated
Business valuation is rarely a single number — it is a range produced by several methods, each capturing a different aspect of value. The EBITDA multiple approach (most common for profitable SMEs) multiplies operating cash flow by an industry-specific factor. Multiples depend heavily on sector, growth rate, profitability, customer concentration, and market conditions; as of 2025 typical SME EBITDA multiples range from 3× to 6×, while high-growth technology businesses can trade at 8×–15× or more. These multiples are provided as editable defaults — adjust them to match your industry.
The revenue multiple method values businesses on their top line regardless of profitability, which is common for early-stage or loss-making companies with strong growth. SaaS businesses, for example, often command 3×–8× annual recurring revenue. The earnings (P/E) method multiplies after-tax net income by a comparable public-market or private-transaction earnings multiple.
Each method has blind spots: EBITDA ignores capital expenditure intensity; revenue multiples ignore profitability; P/E is meaningless if earnings are negative. Using all three and averaging gives a more balanced picture. Real transactions also account for net debt, working capital adjustments, and deal structure — this calculator is a first-pass estimate only and should be supplemented by professional appraisal.
Frequently asked questions
No single method is best — it depends on the business type and stage. EBITDA multiples are most common for profitable established businesses; revenue multiples are used for high-growth pre-profit companies; P/E multiples work well when net income is stable and comparable to public peers. Using all three and noting the range gives the most balanced picture.
Industry multiples are tracked by M&A databases (Damodaran, BVR, PitchBook) and sector reports. As a rough guide (2025): manufacturing 4–6×, retail 3–5×, SaaS/tech 8–15×, professional services 4–7× EBITDA. Ask an M&A adviser or accountant for sector-specific current data.
The EBITDA and revenue methods produce an enterprise value, which includes debt. To get equity value (what a buyer pays for the shares), subtract net debt (total debt minus cash). The P/E method directly values equity. This calculator doesn't model net debt adjustment — do that manually once you have the enterprise value estimates.
TG we-Calculate Editorial Team. (2026). Business Valuation Calculator — EBITDA, Revenue & Earnings Methods [Online calculator]. TG we-Calculate. https://we-calculate.com/calculator/business-valuation-calculator
TG we-Calculate Editorial Team. "Business Valuation Calculator — EBITDA, Revenue & Earnings Methods." TG we-Calculate. 2026. https://we-calculate.com/calculator/business-valuation-calculator.
TG we-Calculate Editorial Team, "Business Valuation Calculator — EBITDA, Revenue & Earnings Methods," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/calculator/business-valuation-calculator
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