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Business Valuation

Business Valuation Calculator

Estimate your business worth using multiple valuation methods and financial analysis.

Business Metrics
Enter your financial data

Annual growth rate for profits

Required rate of return (risk adjustment)

Revenue multiple for your industry

Weighted Average Valuation

$1,120,252.38

2.2x

Revenue multiple

14.9x

Profit multiple

6.7%

Earnings yield

Valuation Methods
Multiple approaches to business valuation

Discounted Cash Flow (DCF)

Present value of projected future cash flows

$956,880.951

40% weight

Revenue Multiple

3.5x annual revenue

$1,750,000

30% weight

Profit Multiple

14.0x annual profit

$1,050,000

20% weight

Asset-Based

Net asset value

$25,000

10% weight

Discounted Cash Flow Analysis
Projected cash flows and present values
YearCash FlowDiscount FactorPresent Value
1$78,7501.120$70,312.5
2$82,687.51.254$65,917.969
3$86,821.8751.405$61,798.096
4$91,162.9691.574$57,935.715
5$95,721.1171.762$54,314.733
Terminal$1,095,475.008-$621,601.939
Total--$931,880.951

$310,279.012

Operating Value

$621,601.939

Terminal Value

$956,880.951

Equity Value

Scenario Analysis
Valuation under different assumptions

Conservative

Lower growth, higher risk

$718,223.292

-24.9%

Base Case

Current assumptions

$968,950.891

+1.3%

Optimistic

Higher growth, lower risk

$1,198,701.459

+25.3%

Valuation Insights

  • • Your business is valued at approximately 2.2x annual revenue
  • • Terminal value represents 66.7% of total enterprise value
  • • Current earnings yield is 6.7% based on weighted valuation
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Valuation Impact

With improved operations

$1,120,252.38

Current valuation

+15-25% potential increase
Value Drivers

Revenue Growth

From better service

+7%

projected

Customer Retention

Improved with Sarah

85%

vs 67% avg

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