Business Valuation Calculator

We add your annual sales and owners salary together to represent the cashflow of the businesses, then subtract your cost of sales.

This is then multiplied by a generic non-industry specific multiplier, as cashflow is the most important factor in a SDE valuation:

• Less than $50,000, SDE multiple is 1.2
• Less than $75,000, SDE multiple is 1.8
• Less than $100,000, SDE multiple is 2.0
• Less than $200,000, SDE multiple is 2.4
• Less than $300,000, SDE multiple is 3.0

Note: Some industries are riskier or less attractive to potential buyers, so a lower multiplier may apply. 

Next, we add on your non-operational assets. This assumes your potential buyer sees these assets as cash equivalent – they may want a reduction and you should adjust for this.

Finally, we multiply the valuation by some conditional factors. For example, we apply a bonus of 20% if your business has more than 2 years in business and similar multipliers if your profits are growing.