A quick market-comparison method, distinct from every discounted-cash-flow calculator on this site — a multiple values a business against what similar businesses have actually sold for, not against a projection of its own future cash flows.
How it works
Annual EBITDA (or revenue) is multiplied by an industry-typical multiple to estimate a sale value. Showing both the EBITDA-based and revenue-based estimates side by side works as a sanity check — wildly different answers usually mean one of the multiples doesn’t fit the business.
What this does not include
The “right” multiple varies enormously by industry, growth rate, and deal specifics — this calculator applies whatever multiple is entered rather than suggesting one, since a wrong multiple produces a confidently wrong valuation.
How to use this calculator
- Enter annual EBITDA and an appropriate industry EBITDA multiple.
- Optionally enter revenue and a revenue multiple for a second estimate.
Frequently asked questions
Why do EBITDA and revenue multiples give different answers?
Because they’re measuring different things — a low-margin, high-revenue business can look overvalued on a revenue multiple and reasonably valued on an EBITDA multiple, or vice versa.
Where do I find the right multiple for my industry?
Industry associations, business brokers, and M&A advisory firms publish typical multiple ranges by sector — this calculator applies whatever figure is supplied rather than looking one up.
Is this the same as a formal business appraisal?
No — a formal valuation considers far more than a single multiple, including specific financials, growth trends, and buyer-specific synergies this quick estimate doesn’t capture.
