Business & Finance

Business Valuation (EBITDA Multiple) Calculator

Estimate the fair market value of your small business or company based on Seller's Discretionary Earnings (SDE), EBITDA, and industry multiples.

What this calculator does

The Business Valuation (EBITDA Multiple) Calculator estimates your result instantly from the values you enter, using standard business & finance formulas. Estimate the fair market value of your small business or company based on Seller's Discretionary Earnings (SDE), EBITDA, and industry multiples. Calculations run in your browser, so nothing you type is sent to a server, and the output is an estimate for planning rather than financial advice.

Business Valuation Results

$0.00

SDE-Based Business Value ($)

  • EBITDA-Based Business Value ($) $0.00
  • Valuation Note —

What This Means

About Business Valuation (EBITDA Multiple) Calculator

The Business Valuation Multiple Calculator estimates business market valuation using standard industry multiples of Seller's Discretionary Earnings (SDE for businesses < $5M) and EBITDA (for mid-market businesses > $5M).

Formula & Mathematical Calculation

Small Business Value (SDE) = Seller's Discretionary Earnings (SDE) × Industry SDE Multiple (2.0x to 4.0x)

Mid-Market Value (EBITDA) = Adjusted EBITDA × Industry EBITDA Multiple (4.0x to 8.0x+)

Calculation Example

$250,000 Annual SDE @ 3.2x Industry Multiple: Estimated Business Enterprise Value = $800,000.00.

Key Benefits

  • Estimates business market valuation using SDE and EBITDA multiples
  • Supports industry-specific multiple benchmarks (SaaS, Ecommerce, Retail, Services)
  • Calculates Seller's Discretionary Earnings with owner salary and perks add-backs
  • Essential for business founders planning an exit or M&amp;A transaction
  • 100% confidential and free valuation tool

How to Use this Calculator

  1. Enter Annual Business Revenue
    Input total yearly sales.
  2. Enter Seller's Discretionary Earnings (SDE) or EBITDA
    Input cash flow available to owner.
  3. Select Industry Sector & Multiple
    Choose sector (e.g. Services 2.5-3.5x, SaaS 4.0-8.0x).
  4. Calculate Valuation
    Click Calculate to view estimated business enterprise value range.

Assumptions & Limitations

What the calculation assumes

  • Every value you enter is treated as an exact, known amount.
  • Rates and contributions are assumed to stay constant for the whole period unless the form asks for them separately.
  • Results use standard financial formulas and ignore fees, penalties and promotional terms that are not entered above.
  • Inflation, tax changes and market volatility are not modelled unless a field for them is provided.
  • Amounts are unit-agnostic: results are returned in the same currency you enter.

What it does not cover

  • Business Valuation (EBITDA Multiple) Calculator produces estimates for education and planning, not a quote, offer or professional advice.
  • Real-world outcomes differ when fees, taxes, rounding rules or provider-specific terms apply.
  • Local regulations and tax rules vary by country and change over time; verify current rules for your jurisdiction.
  • Figures are only as accurate as the inputs you supply — check them before acting on the result.
  • For decisions with lasting financial impact, confirm the numbers with a qualified professional.

Frequently Asked Questions

SDE is the total financial benefit a single full-time owner-operator derives from the business in a year, including net profit, owner salary, health insurance, discretionary perks, and non-cash depreciation.

It multiplies the SDE by the SDE multiple to get an SDE-based value, and separately multiplies the Adjusted EBITDA by the EBITDA multiple to get an EBITDA-based value. Each is shown only when both its earnings figure and its multiple are above zero.

Smaller owner-operated businesses are usually valued on SDE, while larger ones are valued on Adjusted EBITDA. You can enter one or both; the calculator requires at least one of SDE or EBITDA to be greater than zero.

You enter the multiples yourself, typically drawn from comparable-sale data for the industry. The calculator applies whatever multiple you supply rather than assuming one, so the valuation reflects your own market inputs.

No. It is a multiple-based estimate from the earnings and multiples you enter. A formal valuation also weighs growth, risk, assets, and market conditions that a single multiple does not capture.

Free to use, no account needed. Calculations run in your browser, so nothing you type is sent to a server. Results are estimates — how we build and check our calculators.

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