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Business Valuation Calculator

Estimate the value of your business using the standard EBITDA Multiple method.

Financial Inputs

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure of a company's overall financial performance.

4.5x

Typical small businesses sell for 2x to 5x EBITDA. Tech companies or established enterprises might command 6x to 15x+.

Valuation Summary

Estimated Business Value

₹ 3,28,50,000

Calculated EBITDA
₹ 73,00,000
Applied Multiple
4.5x

This is an estimate based on the Earnings Multiple approach. Actual valuation may vary due to assets, liabilities, market conditions, and buyer intent.

How Business Valuation Works

Business valuation is the process of determining the economic value of a whole business. A common method used by investors, particularly for small-to-midsized companies, is the EBITDA Multiple Method.

This approach looks at the cash flow the business generates (EBITDA) and multiplies it by an industry-standard figure to determine the value.

Formula

Valuation = EBITDA × Industry Multiple
What Determines the Multiple?
  • Industry: Tech & SaaS command higher multiples than retail or manufacturing due to scalability.
  • Size & Stability: A business with ₹10 Cr+ EBITDA gets a higher multiple than one with ₹50L due to lower risk.
  • Growth Rate: Rapidly growing revenues warrant higher valuations.
  • Recurring Revenue: Subscription-based models are valued higher than one-off project models.

Frequently Asked Questions

Business valuation is the process of determining the economic worth of a company. It's essential for selling a business, raising funding, partnerships, mergers & acquisitions, insurance, and succession planning.
EBITDA = Earnings Before Interest, Taxes, Depreciation & Amortization. It shows the operational profitability excluding financing and accounting decisions. EBITDA multiples are the most common valuation method because they allow comparison across different businesses and industries.
It varies by industry: SaaS/Tech (10-20x), Healthcare (8-12x), Manufacturing (5-8x), Retail (4-6x), Services (3-5x), Restaurants (3-4x). Growth rate, market position, and profitability margins also affect the multiple.
Enterprise Value = EBITDA × Multiple. Equity Value = Enterprise Value - Debt + Cash. For a buyer, enterprise value represents the total price of the business. Equity value is what goes to the shareholders after settling all debts.
Increase valuation by: improving recurring revenue, maintaining high gross margins, reducing customer concentration, documenting processes, building a strong management team, showing consistent growth, and cleaning up financial statements.