Business Valuation Calculator

Select Currency: Select Industry: Annual Revenue: Annual Profit: Industry Multiplier:

Ever ask yourself, “What is my business really worth?” Whether you’re planning to sell, seeking investment, or simply curious about your company’s financial health, knowing your valuation is the critical first step.

Our free and easy-to-use Business Valuation Calculator provides a powerful, data-driven estimate in minutes. Move beyond guesswork and get the clarity you need to make smarter business decisions.

How Allsums Business Valuation Calculator Works

Getting a realistic valuation estimate doesn’t have to be complicated. Our tool streamlines the process by utilizing a widely accepted methodology that is tailored to your earnings and industry-specific multiples.

Enter Your Financials: Provide your annual revenue and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization).
Select Your Industry: Choose the industry that best represents your business. This is crucial for applying the correct valuation multiple.
Get Your Instant Valuation: Our algorithm instantly processes your data to provide an estimated valuation range for your business.

Why Use the Allsums Business Valuation Calculator?

Not all online valuation tools are created equal. We designed ours to be simple, transparent, and genuinely useful for business owners and entrepreneurs.

Instant & Free: Get an immediate valuation estimate with no cost or obligation.
Completely Confidential: Your financial data is secure and is not stored or shared. Your privacy is our priority.
Based on Real-World Data: Our calculations utilize industry-standard EBITDA multiples to provide a realistic, market-based valuation range.
The Perfect Starting Point: Use your estimate as a powerful baseline for strategic planning, sales negotiations, or fundraising conversations.

Who is This Business Valuation For?

Our calculator is designed for a wide range of strategic needs. Find out how a clear valuation can help you.

For Business Owners Planning to Sell

Understand your company’s potential market value before speaking to a broker. A data-backed valuation provides you with leverage and helps you establish a realistic asking price.

For Entrepreneurs Looking to Buy

Evaluating a potential acquisition? Use our calculator to get a quick sense of whether a target company’s asking price is in a reasonable range before you dive into deep due diligence.

For Founders Seeking Investment

When raising capital, you need to justify your company’s valuation. Our tool provides a defensible starting point for conversations with angel investors and venture capitalists.

For Strategic Business Planning

Track your company’s value over time as a key performance indicator (KPI). See how strategic changes in profitability and growth impact your overall worth.

Frequently Asked Questions (FAQ)

How accurate is this business valuation calculator?

Allsums business valuation calculator provides a high-level, automated estimate. It’s an excellent starting point, but it does not replace a detailed, professional valuation, which would consider factors like assets, liabilities, brand reputation, and growth trajectory.

What is EBITDA and why is it important?

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It’s a key metric used to measure a company’s operational profitability and cash flow, making it a common basis for business valuations across many industries. It shows the core earning power of a business.

Is my financial information safe?

Yes. We are committed to your privacy. The information you enter into the calculator is processed in real-time to generate your valuation and is not stored on our servers or used for any other purpose.

I have my valuation. What are the next steps?

Your instant valuation is just the beginning. The next step depends on your goal:

Selling: Consider a formal valuation and consult with M&A advisors.
Growing: Use the valuation as a benchmark and focus on strategies to increase your EBITDA.
Fundraising: Prepare a detailed pitch deck that justifies your valuation with growth projections.

How to Use the Allsums Business Valuation Calculator

The Business Valuation Calculator is a versatile tool designed to help you estimate the value of a business. It now offers enhanced flexibility with currency selection and dual options for inputting industry multipliers, allowing for both industry-specific defaults and custom adjustments. This calculator provides a quick and reliable estimate that can be useful for selling, buying, or attracting investors. Follow these steps to use the calculator:

Step 1: Select Your Currency

Begin by choosing your desired currency from the ‘Select Currency’ dropdown menu. This selection will dynamically update the currency symbol displayed next to the ‘Annual Revenue’ and ‘Annual Profit’ input fields, ensuring your calculations and results are presented in the correct denomination. For example, if you select ‘INR (₹)’, the labels will change to ‘Annual Revenue (₹)’ and ‘Annual Profit (₹)’.

Step 2: Enter Annual Revenue

Input the total revenue generated by the business over a year into the ‘Annual Revenue’ field. This figure should represent the gross income from all sales, services, or other operational sources before any expenses are deducted.

For example: If the business generates 1,000,000 units of your selected currency annually, enter 1000000.

Step 3: Enter Annual Profit

Next, enter the net profit earned by the business after all operating expenses, taxes, and costs have been deducted. This figure reflects the true profitability of the business.

For example: If the business earns 200,000 units of your selected currency in profit annually, enter 200000.

Step 4: Determine the Industry Multiplier

The calculator offers two ways to input the industry multiplier, providing flexibility based on your needs:

Option A: Select an Industry

Choose the industry that best represents your business from the ‘Select Industry’ dropdown menu. Upon selection, the ‘Industry Multiplier’ field will automatically populate with a default multiplier value relevant to that industry. These default values are based on general industry benchmarks and provide a convenient starting point.

Option B: Enter Multiplier Manually

If you have a specific multiplier in mind, or if you wish to fine-tune the auto-filled value from an industry selection, you can directly enter your desired multiplier into the ‘Industry Multiplier’ field. Any value entered here will override the automatically populated value from the industry selection, giving you full control over this critical input.

The industry multiplier is a crucial factor that reflects the risk, growth potential, and prevailing market conditions of a particular industry. For instance:

A stable industry might typically have a multiplier of 2.5. A high-growth industry might command a higher multiplier, such as 4.0.

It is highly recommended to research industry benchmarks or consult with financial experts to determine the most appropriate multiplier for your specific business context.

Step 5: Calculate Business Value

Once all the necessary information has been entered, click the ‘Calculate Business Value’ button. The calculator will then process your inputs and display two primary valuation estimates:

Revenue-Based Valuation: This estimate reflects the business’s value primarily based on its top-line revenue generation capacity.

Profit-Based Valuation: This estimate indicates the business’s value derived from its underlying profitability.

Understanding the Results

Revenue-Based Valuation: This valuation method emphasizes the business’s ability to generate sales. It is particularly useful for businesses with high revenue but potentially lower profit margins, or for early-stage businesses where revenue growth is a key indicator of potential.

Profit-Based Valuation: This method focuses on the business’s efficiency and ability to convert revenue into profit. It is often considered a more conservative and reliable indicator of value, especially for mature businesses.

Example:

Let’s assume you have selected ‘USD ($)’ as your currency.

If the annual revenue is

1, 000, 000, ann u a lp ro f i t i s

200,000, and the chosen (or manually entered) multiplier is 2.5:

Revenue-Based Valuation:2500000( Calculaed as 2500000 ( Calculated as 1000000 Revenue x 2.5 Multiplier)

Profit-Based Valuation: 500000( Calculated as 500000 ( Calculated as 200,000 Profit × 2.5 Multiplier)

Note: The final valuation may vary depending on additional factors such as prevailing market conditions, the business’s growth potential, competitive landscape, and specific assets or liabilities. Allsums business valuation calculator provides an estimate and should be used as a guide for further financial analysis.