Business Valuation Calculator: What Is My Business Worth?

Get a directional estimate of your business enterprise value using EBITDA or SDE multiples by industry. Understand what drives your number up or down — and how valuation shapes every exit strategy decision that follows.

How to use this estimate

Enterprise value (EV) is what a buyer pays for the operating business — before subtracting your debt. Equity value is the amount that actually reaches you after paying off outstanding loans at close. Both numbers shape your exit planning in immediate, practical ways:

• QSBS eligibility. Section 1202 requires your company's gross assets to have been under $75M at the time of stock issuance (for shares issued after July 4, 2025; $50M for earlier issuances).¹ If your current EV is approaching that range, the QSBS window may still be open — or may already have closed. This is specialist territory with multi-million-dollar consequences.
• Installment sale capacity. Once you know your equity value, you can model an IRC §453 installment note. A $12M equity check spread over 7 years defers most capital gains taxes into future years — but the §453A interest charge applies to notes exceeding $5M outstanding (6% in Q2 2026), and depreciation recapture is due in year one regardless. See Installment Sale Calculator.
• ESOP feasibility range. ESOPs typically make economic sense at $5M–$100M EV. If your estimate falls in that range and you want to explore selling to employees, ESOP exit strategy is worth reviewing.
• Pre-sale estate planning windows. A $15M+ equity value triggers serious estate planning considerations — GRATs, IDGTs, SLATs, and direct gifting before the sale. These strategies require 2–5 years of lead time. If your EV estimate puts you in that zone, the clock matters. See estate planning before a business sale.

EBITDA multiples used in this calculator

The multiple ranges below reflect typical middle-market transactions ($3M–$50M EV) based on IBBA Market Pulse and Pepperdine Private Capital Markets survey data.²³ Your quality tier shifts the estimate within and around the range. Actual deal multiples depend on competitive process, buyer type (strategic vs. PE), and factors specific to your business.

SDE multiples for owner-operated businesses run lower than EBITDA-based multiples, primarily because SDE businesses tend to be smaller and more owner-dependent. This calculator uses these SDE tiers:

• Under $500K SDE: 2.0–3.0×
• $500K–$1M SDE: 2.5–3.5×
• $1M–$3M SDE: 3.0–4.5×
• Over $3M SDE: 3.5–5.0× (at this scale, EBITDA methodology is often more relevant)

What this calculator doesn't capture

This estimate gives you a directional range — not an appraisal, not a fairness opinion, and not a transaction guarantee. Real deal multiples depend on factors that can't be entered into a form:

• Competitive process. A dual-track process with multiple bidders can expand your realized multiple by 1–2 full turns vs. a single-buyer negotiation.
• Strategic vs. financial buyer. Strategic acquirers may pay synergy premiums above what PE-driven multiples suggest. See strategic buyer vs. financial buyer guide.
• Deal structure. Earnouts, seller notes, and rollover equity can bridge valuation gaps — and change the risk profile of what you actually receive. See earnout agreement guide.
• Due diligence findings. QoE analysis, legal review, and customer concentration findings routinely reprice or restructure deals after LOI. See Quality of Earnings guide.
• Growth trajectory. A business growing 30%/year deserves different treatment than a flat one at the same trailing EBITDA. Buyers model forward; your growth story matters.

The right number for planning purposes comes from a specialist who understands both the current transaction market and your specific financial situation. The estimate here is a starting point for that conversation.