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Finance Calculators
Business Valuation Calculator
Estimate a small business's value by applying an industry earnings multiple to its annual net income.
Estimated business value
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About the Business Valuation Calculator
The earnings multiple (or SDE multiple) method is one of the most common ways to estimate a small business's value, buyers typically pay a multiple of the business's annual profit, reflecting its risk, growth and industry.
Formula: Business Value = Annual Net Income (Seller's Discretionary Earnings) × Earnings Multiple
Multiples vary widely by industry and size, typically ranging from 2x to 5x for small owner-operated businesses and higher for larger, more scalable companies.
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