Free Business Valuation Calculator

A business valuation looks at financial performance, market conditions, industry trends, and the company’s risks and growth opportunities. Common approaches include:

• Market comparables: Comparing valuation multiples for similar businesses, with adjustments for differences in size, profitability, and growth.
• Discounted cash flow (DCF): Forecasting future cash flows and discounting them to today’s value using a rate that reflects risk.
• Precedent transactions: Examining prices paid for comparable businesses in completed sales, while considering timing and deal terms.

These approaches offer different perspectives. An advisor can help determine which are appropriate for your business and how much weight to give each.

A valuation is more than an earnings multiple. Six considerations help explain why similar businesses can attract different offers:

1. Buyer demand and market conditions: Interest rates, financing availability, industry trends, and the number of interested buyers can all influence price.
2. Evidence rather than emotional value: Buyers evaluate earnings, risks, and future potential. The time and effort you have invested may not translate directly into a higher offer.
3. The right buyer: A buyer who sees strategic value in your customer base, capabilities, or market position may assess the opportunity differently from a financial buyer.
4. Size and stability: Predictable revenue, sustainable margins, reliable systems, and less dependence on the owner can reduce perceived risk.
5. Relevant comparisons: Useful benchmarks come from businesses with comparable industries, scale, growth, and profitability—not simply another company that sold recently.
6. Deal structure: Cash at closing, earnouts, seller financing, retained equity, and other terms affect what an offer is actually worth to you.

The calculator uses your revenue, net profit before tax, recent profit growth, and industry to produce lower, base, and higher valuation estimates. It also considers the business characteristics you provide:

• Revenue quality: How much revenue is repeat or recurring.
• Customer concentration: How much revenue comes from your five largest customers.
• Regulatory exposure: Whether you operate in or sell to a highly regulated industry.
• Owner involvement: Your plans for remaining involved after a sale.

The results include scenario explanations, assumptions, and valuation multiples relative to your revenue and net profit. Net profit before tax is not the same as EBITDA or free cash flow, and the calculator does not perform a formal discounted cash flow analysis.

Keep in mind: This is an initial estimate, not a professional appraisal. A valuation expert can review your financial records, adjustments, and market evidence in more detail.

Use reasonable estimates for financial figures or percentage ranges you do not have readily available. Base them on your recent accounts and business records where possible.

More accurate inputs make the estimate more useful. Recalculate when you have better information, particularly if your revenue, profit, or customer mix has changed significantly.

The range can help you prepare for a sale, organize your financial information, and start a conversation about price expectations. It is not a guaranteed sale price or a substitute for due diligence.

Before going to market, an experienced M&A advisor or valuation professional can review your financials, identify adjustments, and help assess offers and deal terms. Explore selling your business with Dealflow to learn more about preparing a confidential profile and connecting with potential buyers.

Yes. You can use the results to start a discussion with your accountant, an M&A advisor, or a valuation professional. Share the inputs and assumptions alongside the range so they can explain what may change after a more detailed review.

If you are considering a sale, learn more about Dealflow’s offering for owners and the next steps for exploring buyer interest while controlling what information you share.