🏢 Business Valuation Calculator
Estimate the value of a business using three proven methods — EBITDA multiple, Revenue multiple, and Discounted Cash Flow (DCF) — and get a blended average valuation instantly.
Enter your values
- EBITDA valuation€500,000.00
- Revenue valuation€1,000,000.00
- Blended average valuation€1,086,666.67
What this means
- Valuation range across all three methods: €500,000.00 (low) to €1,760,000.00 (high).
- DCF valuation (€1,760,000.00) exceeds the EBITDA valuation (€500,000.00) — growth assumptions drive a premium.
- Recommended blended valuation: €1,086,666.67 (simple average of all three methods).
Visual results
Detailed breakdown
| EBITDA multiple | EBITDA valuation | Revenue valuation | DCF valuation | Blended average |
|---|---|---|---|---|
| 1 | €100,000.00 | €1,000,000.00 | €1,760,000.00 | €953,333.33 |
| 2 | €200,000.00 | €1,000,000.00 | €1,760,000.00 | €986,666.67 |
| 3 | €300,000.00 | €1,000,000.00 | €1,760,000.00 | €1,020,000.00 |
| 4 | €400,000.00 | €1,000,000.00 | €1,760,000.00 | €1,053,333.33 |
| 5 | €500,000.00 | €1,000,000.00 | €1,760,000.00 | €1,086,666.67 |
| 6 | €600,000.00 | €1,000,000.00 | €1,760,000.00 | €1,120,000.00 |
| 7 | €700,000.00 | €1,000,000.00 | €1,760,000.00 | €1,153,333.33 |
| 8 | €800,000.00 | €1,000,000.00 | €1,760,000.00 | €1,186,666.67 |
| 9 | €900,000.00 | €1,000,000.00 | €1,760,000.00 | €1,220,000.00 |
| 10 | €1,000,000.00 | €1,000,000.00 | €1,760,000.00 | €1,253,333.33 |
About this calculator
What this calculator does
This business valuation calculator estimates the value of a business using three established methods simultaneously — the EBITDA multiple, the Revenue multiple, and the Discounted Cash Flow (DCF) model — and presents a blended average valuation alongside each individual result. All three figures update instantly as you adjust the inputs, so you can explore how sensitive the valuation is to key assumptions like the growth rate, the discount rate, or the industry multiple.
The formulas
EBITDA multiple
The most common method in business sales and acquisitions:
EBITDA Valuation = EBITDA × Industry Multiple
EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation) is a proxy for operating cash generation. Multiplying by an industry-appropriate multiple converts it into an estimated business value.
Revenue multiple
Used when EBITDA is not meaningful (early-stage or high-growth companies):
Revenue Valuation = Annual Revenue × Industry Multiple
DCF — Gordon Growth Model (growing perpetuity)
The theoretically rigorous approach, valuing the stream of future free cash flows:
DCF Valuation = FCF × (1 + g) / (r − g)
where:
- FCF — annual free cash flow
- g — expected long-term annual growth rate (decimal)
- r — discount rate / WACC (decimal)
This formula requires r > g. When the growth rate equals or exceeds the discount rate, the calculator applies a conservative 10× free cash flow multiple as a fallback.
Blended average
Average Valuation = (EBITDA Valuation + Revenue Valuation + DCF Valuation) / 3
How to interpret your results
- DCF valuation (headline) reflects what the business’s future cash flows are worth in today’s money, discounted at your required rate of return. It is the most sensitive to the growth and discount rate assumptions.
- EBITDA valuation reflects what a buyer in your industry would typically pay relative to current earnings. Compare your inputs against recent comparable transactions.
- Revenue valuation is most relevant for pre-profit or fast-growing businesses where top-line scale matters more than current margins.
- Blended average is a pragmatic middle ground. In practice, buyers and sellers negotiate within the range shown — the low end anchors a conservative floor, the high end a growth-premium ceiling.
A wide gap between the three methods signals that the business has unusual characteristics — high growth relative to current profitability, a capital-light model, or an industry premium — and warrants a closer look at the assumptions.
Common use cases
- Sale or acquisition — establishing an initial asking price or bid range before formal due diligence
- Fundraising — presenting a defensible valuation range to investors or banks
- Succession planning — understanding the value of a business before transferring ownership
- Strategic decisions — quantifying how improving margins or growth changes the value of the business
- Sensitivity analysis — use the chart to see how the EBITDA multiple range from 1× to 15× affects the valuation, and use the comparison panel to stress-test growth or discount rate assumptions
Frequently asked questions
Which valuation method is most accurate?
No single method is definitively most accurate — each captures a different dimension of value. EBITDA multiples are the most widely used in M&A transactions because they allow quick comparisons across companies. DCF is theoretically the most rigorous because it values the actual future cash flows the business generates. Revenue multiples are most useful for early-stage or high-growth companies that are not yet profitable. Using all three and taking a blended view reduces the risk of relying on one flawed assumption.
What EBITDA multiple should I use?
EBITDA multiples vary significantly by industry, size, and growth rate. As a rough guide: small service businesses typically trade at 3–5×; established mid-market companies at 5–8×; technology or high-growth businesses at 8–15× or more. Check recent comparable transactions (comps) in your industry for the most reliable benchmark. A higher multiple reflects higher growth prospects, lower risk, or a strategic premium paid by a buyer.
How does DCF valuation work?
DCF (Discounted Cash Flow) values a business by estimating the present value of all future cash flows it is expected to generate. This calculator uses the Gordon Growth Model — a growing perpetuity formula: Value = FCF × (1 + g) / (r − g), where FCF is free cash flow, g is the expected long-term growth rate, and r is the discount rate (WACC). The formula works when r > g; if growth equals or exceeds the discount rate, a conservative 10× cash flow multiple is used as a fallback. The discount rate should reflect the risk of the business — higher risk means a higher rate and a lower valuation.