Company Valuation Calculator

Someone asks what your company is worth and the honest answer is usually three answers: what its earnings support, what its profits support, and what would be left if it sold everything and paid every bill. This calculator runs all three lenses at once and averages them, so you get one estimated valuation with the working shown, not a single mystery number.

Enter annual revenue, net profit, EBITDA, an industry multiplier, total assets, and total liabilities. You get the blended estimate plus the EBITDA-based value, the profit-based value, book value, profit margin, and return on equity behind it.

Quick Answer

How to use the company valuation calculator

Pull the five money figures from your latest full-year accounts before you start: revenue, net profit, EBITDA, total assets, and total liabilities. If your accounts show operating profit instead of EBITDA, add back interest, tax, depreciation, and amortization to get EBITDA. Enter all six numbers, pick a multiplier that matches recent sales of similar companies in your industry, and press Calculate Valuation.

Read the result in two passes. First the headline average, then the spread between the three methods underneath it. A tight spread means the methods agree and the estimate is sturdier. A wide spread is information too: it usually means the company earns well on a thin asset base, or sits on valuable assets it barely sweats. Run the tool again at a multiplier half a point lower and half a point higher before you quote the number to anyone. If the company is a very small, owner-run business where the owner takes profit as salary and perks, the earnings figure buyers use is seller discretionary earnings instead, and the small business valuation calculator is built for that case.

The three methods inside the estimate, line by line

The tool blends three standard methods and weights them equally. Here is exactly what each one does.

EBITDA-based value is the workhorse of mid-market deals. EBITDA strips out financing choices and non-cash charges, so buyers can compare two companies without caring how each one borrowed or depreciates its kit. The multiplier then prices growth, risk, and industry heat in one number.

Profit-based value uses the bottom line after every cost, and this tool applies the same industry multiplier to it, with no addition. That is the standard earnings-multiple method: value equals earnings times the multiple, the same form brokers apply to profit. Because net profit is a smaller, harder number than EBITDA, the profit-based figure usually lands below the EBITDA-based figure on the same inputs, and the gap between the two shows how much interest, tax, depreciation, and amortization cost the business each year.

Book value is the accounting residue: assets minus liabilities. It anchors the average to the balance sheet, which is why asset-heavy companies see their estimate pulled up and asset-light companies see theirs pulled down. What the balance sheet counts as profit matters here, so if your reported profit is weighed down by one-off costs, the adjusted net profit calculator helps you see the cleaner earnings figure buyers tend to work from. Lenders read the same balance sheet for leverage, and the debt to enterprise value ratio calculator compares a company's total debt with the value of the whole enterprise as a quick risk screen.

Worked example: reading a $775,000.00 estimate properly

The calculator is pre-filled with this case, and every figure below is exactly what it returns.

The two earnings methods put value at $1,125,000 and $900,000, and book value drags the average down to $775,000.00. That pattern is typical of a profitable, asset-light company: the earnings say one thing, the balance sheet says far less, and the truth a buyer pays usually sits closer to the earnings figures, with the gap explained by goodwill. The 66.67% return on equity tells the same story from another angle: this company generates a lot of profit from very little invested capital, which is exactly the profile buyers compete for.

The multiplier sensitivity is worth seeing in numbers. At 3.5x the same company estimates at $625000.00; at 5.5x it estimates at $925000.00. A single turn of the multiplier moves the answer by $300,000, which is why valuation arguments are almost always multiplier arguments.

Picking an industry multiplier without fooling yourself

The multiplier is the market price of a dollar of earnings in your industry, and it moves with growth, recurring revenue, and how replaceable the owner is. Broad orientation ranges look like this, and they are orientation only: recent broker and transaction-database summaries put many small service businesses around 2x to 5x earnings, established mid-market companies commonly at 4x to 8x EBITDA, and high-growth software at the top of the range or priced on revenue instead. The U.S. Small Business Administration guidance on closing or selling a business makes the same basic point this tool is built on: value the business with a recognized method before you market it, and expect buyers to test the number.

Growth belongs in the multiplier, not in a separate input. A company growing revenue 25% a year with contracted recurring income earns a higher multiple than a flat company with the same EBITDA, because the buyer is purchasing next year's earnings too. If you are torn between two multiples, run both and treat the pair as your negotiating range rather than splitting the difference and pretending precision. Owners of very small businesses sometimes get a cleaner read from the companion small business value calculator, which is framed around the owner-operator sale those deals usually are.

What competing calculators miss

Most valuation tools reviewed for this page commit to one method and defend it. That is cleaner to sell and worse to use.

Miss 1: one method, no cross-check. EBITDA-only tools cannot tell you that your balance sheet disagrees with your income statement. Blending three methods with equal weight is crude, but the disagreement between them is the most useful output a quick tool can give you.

Miss 2: silent formula tweaks. Several tools describe a plain profit multiple while their code does something slightly different, or describe a revenue multiple their code never computes. The formulas here are printed exactly as the code runs them, with the same plain multiplier applied to EBITDA and to profit, so you can reproduce every figure by hand.

Miss 3: no sensitivity habit. A single-point estimate invites false confidence. Nothing here stops you rerunning the tool at three multipliers in ten seconds, and the worked example shows the dollar size of that swing so you know why it matters.

One honest limit, stated plainly: equal weighting is a screening convention, not professional practice. Appraisers weight methods by how reliable each one is for the specific company, they adjust earnings for owner perks and one-off items, and they consider the eight factors in IRS Revenue Ruling 59-60, from earning capacity to goodwill. Use this estimate to start the conversation, not to settle it.

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