Business Valuation Multiples Calculator
Value your private business using market comparable multiples. Model Enterprise Value (EV) and Equity Value across EBITDA, Seller's Discretionary Earnings (SDE), or Revenue multiples.
Business Financials & Recasting Add-Backs
Normalize owner compensation, one-off expenses, and interest to compute true SDE & EBITDA
$3,937,500
5.3x Seller's Discretionary Earnings (SDE)Low: $3,000,000
High: $4,875,000
$750,000
Discretionary earnings$600,000
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Estimating Private Enterprise Value with Market Multiples
Comparable multiples valuation is the most widely applied method for pricing middle-market businesses, private companies, and startups in M&A transactions. By applying an industry-standard multiple to earnings metrics—such as Adjusted EBITDA for larger enterprises or Seller's Discretionary Earnings (SDE) for owner-operated small businesses—buyers and sellers establish a credible fair market value baseline.
Key Features
Multi-Metric Valuation Toggle (EBITDA, SDE, Revenue)
Seamlessly switch between EBITDA multiples (middle market), SDE multiples (small business), or Revenue multiples (high growth).
Pre-Loaded Industry Comps
Select from standard benchmark multiple ranges for Software, Healthcare, Professional Services, Manufacturing, and Retail.
Enterprise Value to Equity Value Bridge
Accurately adjusts for cash on balance sheet and funded debt to compute net take-home equity proceeds for shareholders.
Adjusted EBITDA Normalization Guidance
Prompts users to add back discretionary owner perks, one-time litigation costs, and non-recurring expenses.
Valuation Sensitivity Range
Displays baseline, low-end (-1.0x), and high-end (+1.0x) valuation outcomes to prepare for transaction negotiations.
M&A Teaser Summary Generator
Formats valuation metrics into an executive summary block for business brokers, investment bankers, and owners.
Common Use Cases
- ✓Business Owners Planning Exit
Determine your business's likely selling price before engaging investment bankers or business brokers.
- ✓Private Equity & Search Fund Buyers
Formulate initial non-binding Letters of Intent (LOIs) and sanity-check seller asking prices.
- ✓M&A Intermediaries & Brokers
Build quick valuation ranges for client pitch decks and confidential information presentations.
- ✓Partnership Buyouts
Establish objective benchmark valuations for resolving 50/50 partner disputes or retiring founders.
Frequently Asked Questions
What is the difference between SDE and EBITDA?
Seller's Discretionary Earnings (SDE) is used for small businesses (typically under $5M revenue) and includes one owner's full compensation and discretionary perks back into earnings. EBITDA is used for mid-market and institutional companies where management is salaried and separate from ownership.
What is the difference between Enterprise Value and Equity Value?
Enterprise Value (EV) is the total value of the operating business enterprise regardless of capital structure. Equity Value is the value of the shares belonging to shareholders, calculated as: Enterprise Value + Cash - Funded Debt.
What EBITDA multiple is normal for a private business?
Small businesses ($1M-$3M EBITDA) typically trade at 3.5x to 5.5x. Lower-middle market businesses ($3M-$10M EBITDA) trade at 5.5x to 8.5x. High-growth or recurring revenue tech businesses regularly trade at 10x to 15x+ EBITDA.
How do add-backs affect my valuation?
Every $10,000 in legitimate normalized add-backs (such as one-off legal fees or excess owner salary) increases enterprise value by $50,000 at a 5x multiple or $80,000 at an 8x multiple.
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