Business Valuation Calculator

What metrics actually affect your business value?

Most businesses trade on EBITDA. Use this calculator to find your business’s estimated EBITDA multiple in a sale.

Business value estimate

$12M

Business value estimate: $12M

$3,000,000 EBITDA × 4.0

How this estimate is calculated

  • +5Great EBITDA$15M
  • −1Data risk−$3M
  • Value estimate (4.0×)$12M

Illustrative scoring model. Unanswered questions and excluded metrics add no adjustment. Better reporting does not guarantee a sale price. Shared links include your figures and answers.

Baseline numbers

Value Adders

Value Detractors

Owner dependency
Customer concentration
Single sales channel
Volatile market

Can you back up your numbers?

3 of 3 answered
Revenue reconciliation
Profit visibility
Repeatable reporting

Business value estimate

$12M

How confident are you in the numbers behind your decisions?

Stackless brings your business data together so you can understand profitability, track performance, and answer important questions with confidence. Start with the reporting that would help you most.

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Input guide & calculation details

Input guide

What to enter

Approximate figures are fine to start. Use the same 12-month period for revenue and EBITDA.

Annual revenue
Total sales over your last 12 months
EBITDA margin %
EBITDA ÷ revenue. Lower than gross margin, higher than net margin.
How to find your EBITDA margin

Start with net income on your annual profit-and-loss statement. Add back interest expense, income taxes, depreciation, and amortization. Divide that EBITDA by revenue for the margin. Ask your accountant to confirm the figures and any one-off adjustments.

Owner pay and discretionary expenses need careful treatment. Smaller owner-operated businesses are often valued on seller’s discretionary earnings (SDE) instead, which is a different measure.

Revenue Growth %
Your last 12 months of revenue compared with the 12 months before.
Yearly Revenue Retention %
Revenue this year from last year’s customers, divided by what those same customers paid last year. Include lost customers and upsells; exclude new customers. It can exceed 100%.
LTV:CAC
Expected gross profit over a customer’s lifetime divided by the cost to acquire that customer.
Enterprise value
The value of the whole business before debt, cash, deal fees, and taxes. It is not the amount an owner would take home from a sale.

Methodology

How the estimate works

  1. 1

    Start with annual earnings

    Enter your EBITDA margin. Annual EBITDA is revenue multiplied by that margin, for the same 12 months.
  2. 2

    A starting multiple for your size

    Annual EBITDA

    • Under $1M1×
    • $1M to $3M (Good)2.5×
    • $3M to $10M (Great)5×
    • $10M or more (Amazing)6×
  3. 3

    Add performance points

    Revenue growth

    • 30% or more (Good)+1
    • 100% or more (Great)+2

    Yearly revenue retention

    • 80% or more+2

    EBITDA margin

    • 30% or more+0.5

    LTV:CAC

    • 10:1 or more+0.5
  4. 4

    Subtract risk points

    Buyer risks

    • Owner dependency−3
    • Customer concentration−2
    • Single sales channel−1
    • Volatile market−1

    Data risk

    • Any reporting question answered No−1

    Data risk counts once, however many questions are No. Multiply the final score by annual EBITDA. A score of zero or below is not a usable dollar valuation.

  5. 5

    Understand the limits

    Industry, deal terms, assets, and owner compensation all affect what a buyer will pay. Smaller owner-operated businesses are often valued on seller’s discretionary earnings (SDE) instead. A valuation adviser can choose the right method for your business.
  6. 6

This educational estimate is not a formal valuation, market appraisal, or financial, tax, legal, or investment advice. Calculations run in your browser. Shared links include the figures and answers you enter.