Business Valuation Calculator
Estimate your company's exit value using industry-standard EBITDA and Revenue multipliers.
Frequently Asked Questions
Why is SaaS valued on Revenue while Agencies are valued on Profit (EBITDA)?
Software margins approach 90% at scale, so investors care about acquiring top-line market share. Agencies require proportional human labor to scale, meaning gross revenue does not guarantee net scalability. Investors want to buy the net profit (EBITDA), not a heavy payroll.
What is a growth premium?
Multipliers adjust based on trajectory. A company doubling year-over-year commands a massive premium multiplier compared to an identical company growing at 2%. Momentum demands a higher entry price.
Can a pre-revenue startup use this?
No. Pre-revenue startups are valued based on team pedigree, market TAM, and negotiating leverage. This calculator uses quantitative cash flow metrics suited for operational businesses.
Demystifying Enterprise Value
Most founders drastically overestimate or maliciously underestimate the value of their companies because they apply incorrect paradigm multiples. A digital marketing agency doing $5M in revenue cannot be valued at a 10x top-line multiple like a B2B SaaS company. That fundamentally ignores how private equity and strategic acquirers evaluate risk and scalability. The business valuation calculator correctly assigns EBITDA or Revenue multiples based on your exact business archetype.
Our algorithm accounts for the reality of M&A (Mergers and Acquisitions). By inputting your top-line revenue, net profit margin, and trailing annual growth rate, we simulate a standard diligence estimate. Relevant search strategies include how to calculate the valuation of a small business, SaaS revenue multiple calculator, EBITDA agency valuation formula, the difference between enterprise value and equity value, and how to improve investor readiness scores before going to market. Selling a company is the ultimate test of its architecture; build it to be valuable on paper, not just in your mind.