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What is your business worth? A range built from what similar businesses sold for.
Start with the average earnings multiple for your industry, then adjust it for the qualities buyers pay more, or less, for.
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Business Calculators / Business Valuation Calculator
Business Valuation Calculator
Midpoint $0
How is this estimated?
We start from the average earnings (SDE) multiple at which businesses in your industry actually sold. Each value driver moves that multiple up or down by a few percent a step, and the range is 10% either side of the result: Value = SDE x (Blended Multiple +/- 10%). If you enter revenue, we also show revenue times the industry's average revenue multiple as a cross-check; earnings are the more reliable guide for small businesses.Multiples from BizBuySell Insight Data, businesses sold Q3 2021 through Q2 2026, averages by sector and industry. Actual prices depend on financials, terms, market conditions and buyer demand. Not an appraisal or an offer to buy or sell.
This gives you a fast, market-based estimate of what a small business might be worth. It applies the average SDE multiple at which businesses in your sector and industry actually sold, then adjusts it for the qualities buyers care most about: how involved the owner is, growth, how durable the revenue is, how wide the pool of qualified buyers is, and the state of the books.
It is built for anyone sizing up a deal: owners sense-checking a price before going to market, and buyers judging whether an asking price is in line. Move the sliders to see how each driver shifts the range. For a valuation built on your actual financials, ask EDGE for a complimentary, confidential valuation.
Questions
Business Valuation Calculator: frequently asked questions
How does this calculator estimate value?
Most small businesses are priced as a multiple of their earnings. The calculator takes your SDE and multiplies it by the average multiple for your industry, adjusted by your value drivers: Value = SDE x (Blended Multiple +/- 10%).
What is an SDE multiple?
It is the sale price divided by the business's SDE. A business with $300,000 of SDE that sells for $900,000 sold at 3.0x. Most Main Street businesses sell for roughly 2x to 4x.
Are these asking prices or sale prices?
Sale prices. The multiples come from reported financials of businesses that actually sold, which are usually lower than asking prices.
Why do multiples change by industry?
Buyers pay more for industries with steady demand, recurring revenue, fewer licensing barriers and easier financing, and less where earnings swing or the business depends on one person's skill.
What are the value drivers?
Five qualities that move a price: owner involvement (absentee owners sell for more), five-year growth, how recurring the revenue is, how many buyers are qualified to run it, and how clean the financial records are. Each step moves the multiple a few percent.
Why a range instead of one number?
Two similar businesses rarely sell at the same multiple. Terms, timing, the buyer and the negotiation all move the final price, so a range is the honest answer.
My estimate seems off. What should I check?
Check that the SDE includes the right add-backs (our SDE Calculator walks through them) and that the industry fits. A business that straddles two industries is often valued closer to the stronger one.
How accurate is it?
It is a starting point, not a valuation. A real valuation looks at your actual financials, customers, lease, staff and market, which is what an EDGE advisor does for free.
Is this an appraisal or an offer?
No. It is an educational estimate and not an offer to buy or sell.
Next Step
Want a value built on your real numbers?
EDGE provides complimentary, confidential valuations with no obligation.