SaaS and Startups
Business Valuation Calculator
A business valuation calculator estimates what a company might be worth using common shortcut methods. This tool offers three: a revenue multiple, an earnings multiple based on SDE or EBITDA, and a discounted cash flow model. Each result is a range built from assumptions you enter. It is an educational estimate, not a professional appraisal.
Reviewed October 2026
Calculator
Results
Start typing and results appear here instantly, with the formula behind each one. Or load the example.
Calculations run in your browser. Nothing you enter is sent to Stack Row.
How to Use the Business Valuation Calculator
Choose a method, enter the figures and your assumptions, and select Calculate.
- Revenue Multiple multiplies annual revenue by a low and high multiple.
- Earnings Multiple multiplies seller's discretionary earnings (SDE) or EBITDA by a low and high multiple.
- Discounted Cash Flow projects free cash flow, then discounts it to today's value.
Load example values a small owner-run business on SDE. Running more than one method and comparing the ranges gives a better sense of the spread than any single number.
Valuation Formulas
| Method | Formula |
|---|---|
| Revenue multiple | Annual revenue × multiple |
| Earnings multiple | SDE or EBITDA × multiple |
| Forecast cash flow | Cash flow × (1 + growth) for each year |
| Present value | Cash flow ÷ (1 + discount rate)^year |
| Terminal value | Final-year cash flow × (1 + terminal growth) ÷ (discount rate − terminal growth) |
| DCF value | Sum of present values + present value of terminal value |
Corporate Finance Institute's overview of valuation methods describes comparable multiples and discounted cash flow, and its EBITDA multiple page explains how earnings multiples are used.
Choosing a Method
- SDE multiples suit owner-operated small businesses. SDE adds the owner's salary and personal expenses back to profit.
- EBITDA multiples suit larger companies with management in place.
- Revenue multiples suit fast-growing companies that are not yet profitable, including many software businesses. Recurring revenue usually earns higher multiples, because it is more predictable. The economics behind that are covered in what B2B SaaS is.
- Discounted cash flow suits businesses with predictable cash flow. It is the most detailed method, but small changes in its inputs move the result a lot.
The calculator does not supply industry multiples, because they vary with size, growth, margins, and market conditions. Use multiples from recent sales of comparable businesses, a broker, or an advisor. Growth trends in SaaS revenue and adoption statistics can help frame the growth rate assumption for software companies.
Worked Examples
A small owner-run business earns $400,000 in SDE. Using example multiples of 2.5 to 3.5, the estimated value range is $1,000,000 to $1,400,000, with a midpoint of $1,200,000. These multiples are illustrations only.
A discounted cash flow example uses $200,000 of current free cash flow, 10% annual growth for five years, a 15% discount rate, and 3% terminal growth. Cash flow grows to about $322,102 in year five. The forecast years are worth about $876,884 today, and the terminal value adds about $1,374,549, for a total of about $2,251,433. The terminal value makes up about 61% of the result, which shows how much the long-term assumptions matter.
Methodology and Limitations
- All multiples, growth rates, and discount rates are your assumptions. The calculator does not know your industry or market conditions.
- Results ignore debt, cash, working capital, and deal terms, which change what a buyer actually pays.
- Discounted cash flow assumes steady growth and a constant discount rate.
- This calculator gives an educational estimate. A formal valuation for a sale, tax, legal, or lending purpose needs a qualified professional. The U.S. Small Business Administration's guide to buying an existing business recommends professional help with valuation.
- Currency selection changes the displayed symbol only and does not convert values.
- Inputs stay in your browser. A calculation is saved locally after you select Calculate.
Frequently Asked Questions
How Do You Calculate the Value of a Business?
Common shortcuts multiply earnings or revenue by a multiple drawn from comparable sales, or discount projected cash flows to today's value. Using several methods gives a range rather than a single figure.
What Is SDE?
Seller's discretionary earnings is profit before the owner's salary, personal expenses run through the business, interest, taxes, depreciation, and amortization. It shows what one owner-operator could take from the business.
What Multiple Should I Use?
Use multiples from recent sales of similar businesses in your industry and size range. Brokers, advisors, and published deal databases are better sources than general rules of thumb.
Why Is the DCF Value So Sensitive?
Most of a DCF value often comes from the terminal value, which depends on the gap between the discount rate and long-term growth. Small changes in either rate change the result a lot.
Is This Calculator a Formal Valuation?
No. It is an educational estimate from your assumptions. Formal valuations for sales, taxes, disputes, or financing should come from a qualified professional.