How is business value calculated?

The most common method is the EBITDA multiple: EBITDA × industry multiple (typically 4–10× for SMEs). Other methods include revenue multiples, earnings (P/E) multiples, and net asset value (assets minus liabilities). DCF (Discounted Cash Flow) is the most accurate but requires future projections.

What is an EBITDA multiple and what affects it?

The EBITDA multiple tells how many times the annual EBITDA a buyer pays. It depends on industry, growth rate, customer base quality, recurring revenue, competitive advantage and market conditions. SaaS companies command 10–20×, construction companies 3–6×.

What is Net Asset Value (NAV)?

NAV = total assets − total liabilities. It is the "floor value" of a business — what would remain if everything were sold. A profitable operating business is generally worth more than its NAV alone due to customers, brand, and expertise.

What does DCF analysis mean?

DCF (Discounted Cash Flow) calculates the present value of future cash flows. You project free cash flows 5–10 years forward, discount them to present using the WACC rate, and add a terminal value. The method is sensitive to assumptions and best suited for stable businesses.

When is the best time to sell a business?

The best time to sell is when revenue is growing, profitability is strong, and trends are upward. Buyers pay more for future potential than past performance. Also, owner-independence (the business runs without the owner) significantly increases value.

WACC (Weighted Average Cost of Capital) is the weighted average cost of capital — the investor's required return. For SMEs, a typical WACC is 10–20%: the riskier the business, the higher the discount rate and the lower the DCF value.

🏢 Business Valuation Calculator

Estimate your company's value using four methods: EBITDA multiple, revenue multiple, earnings multiple, and net asset value. Suitable for business sales, acquisitions, and investor negotiations.

🏭 Industry & Details

Industry

EBITDA Multiple

5–8×

Revenue Multiple

0.5–1.5×

P/E Multiple

8–14×

📊 Financial Data

Revenue (€/year)

EBITDA (€/year)

Earnings before interest, taxes, depreciation & amortization

Net Profit (€/year)

After-tax profit

Total Assets (€)

Total Liabilities (€)

Cash & Short-term Investments (€)

Added to asset-based value

Growth Rate (% / year): 10%

-10%0%25%50%100%

💰 Valuation Results

Enter financial figures to see valuation

This business valuation calculator estimates a company's value using several methods: an EBITDA multiple, a revenue multiple, an earnings-based approach and asset-based value, and it also includes a DCF analysis. It gives owners, buyers and investors a quick range for a company's worth from different angles.

How the calculator works and what it’s for▾

How the valuation works

In the EBITDA multiple method, earnings before interest, taxes, depreciation and amortisation are multiplied by a multiple typical for the sector. The revenue method instead relates value to the company's level of sales.

The earnings approach is based on the profit the company generates, while the asset-based value rests on net assets, that is assets minus liabilities. The DCF analysis discounts future cash flows back to today, capturing the expected return and the time value of money.

What you get

The calculator presents the company's value across several methods side by side. This lets you see whether the different approaches point in the same direction or diverge.

Comparing several methods is valuable because no single figure tells the whole story. A range of values gives a more realistic picture than one precise number.

Who it is for

The valuation calculator supports SME sales, acquisitions and succession planning, as well as investor negotiations where an initial sense of value is needed.

It also suits an owner who wants to track how their company's value develops or to prepare for financing talks with a well-founded starting figure.

Good to know

The calculator gives an indicative estimate and does not replace a professional valuation. The sector, growth prospects, customer base and risks all significantly affect the final price.

Use the results as a basis for discussion and confirm important deals with an expert, because the actual sale price is always set in negotiation and by the company's individual factors.

🔄 Reviewed June 2026