Free Small Business Valuation Calculator. A Quick and Simple way to Value your Business online.

Ever wonder what your business is worth?

No need to spend time or money on a business valuation firm. Just enter in the information on our valuation spreadsheet and our software will calculate the value of your small business.

The formula we use is based on the Multiple of Earnings method which is most commonly used in small business valuation. The multiple is similar to using a discount cash flow, or capitalization rate used by top business valuation appraisers and top analysts. We’ve just simplified it for small business owners.

For a more personalized and in depth business valuation, we provide a free business evaluation and consultation! for local business owners who are thinking about selling their Business.

Learn How to Sell your Business! , How to Buy a Business! , The Business Seller's Guide


Step 1: Determine the Discretionary Earnings of the business.

Discretionary Earnings is the Net earnings of the business before Interest, Tax's, Depreciation and Amortization plus Owners Salary and non recurring expenses.

Multiple of Earnings Method
12 Month Period Last Year 2 Years Ago 3 Years Ago
Source: TR TR TR
Sales: $ $ $
Cost of Goods Sold: $ $ $
Operating Expenses: $ $ $
 
Addbacks:
Officer Salaries: $ $ $
Depreciation: $ $ $
Interest: $ $ $
Other: $ $ $

Step 2: Determine the Multiple of Earnings to Use.

To determine the multiple of earnings to use, we start with a base number determined as follows:

Industry Factors (Choose 1):
Automotive > Auto Body
Automotive > Auto Repair, Parts & Services
Automotive > Automotive Dealers
Automotive > Car Wash
Automotive > Gasoline Service Stations
Automotive > Wrecking Yard
Construction
Construction > Special Trades
Entertainment > Entertainment/Film Production Industries
Franchise
Internet > Business Services (B2B)
Internet > Consumer Services (B2C)
Manufacturing
Manufacturing > Apparel & Finished Fabrics
Manufacturing > Chemicals & Allied Products
Manufacturing > Electronic & Electrical Equipment
Manufacturing > Fabricated Metal Products
Manufacturing > Food & Kindred Products
Manufacturing > Furniture & Fixtures
Manufacturing > Industrial & Commercial Machinery
Manufacturing > Leather & Leather Products
Manufacturing > Lumber & Wood Products
Manufacturing > Measuring & Analyzing Instruments
Manufacturing > Miscellaneous Manufacturing
Manufacturing > Paper & Allied Products
Manufacturing > Personal Care Products
Manufacturing > Petroleum Refining
Manufacturing > Primary Metal Industries
Manufacturing > Printing,Publishing
Manufacturing > Rubber & Plastic Products
Manufacturing > Stone, Clay, Glass, Concrete
Manufacturing > Textile Mill Products
Manufacturing > Tobacco Products
Manufacturing > Transportation Equipment
Manufacturing > Vinyl Products
Restaurants > Bars/Taverns
Restaurants > Coffee Shop
Restaurants > Other Eating & Drinking Places
Restaurants > Restaurant
Retail
Retail > ATM Machines
Retail > Apparel & Accessory Stores
Retail > Bicycle Shop
Retail > Bldg Materials, Home & Garden
Retail > Coin Laundry
Retail > Convenience Stores
Retail > Florist, Gifts
Retail > Furniture
Retail > General Merchandise Store
Retail > Gym, Physical Fitness
Retail > Home Furniture & Furnishings
Retail > Jewelry Design and Sales
Retail > Liquor Stores
Retail > Medical Products & Supplies
Retail > Miscellaneous Retail
Retail > Other Food Stores
Retail > Pet Shops & Supplies
Retail > Postal Centers
Retail > Supermarkets
Retail > Tobacco & Related Products
Retail > Vending Machines
Retail > Video Rentals
Services
Services > Accounting
Services > Advertising, Marketing & PR
Services > Agents & Brokers
Services > Amusement & Recreation
Services > Beauty & Barber Shops
Services > Business Services
Services > Computer & Software
Services > Dry Cleaning/Laundry
Services > Educational Services
Services > Engineering
Services > Freight Carriers, Moving/Delivery
Services > Health, Medical & Dental
Services > Hotels & Other Lodging
Services > Insurance
Services > Jewelry Repair
Services > Landscaping & Yard Services
Services > Legal Services
Services > Magazine
Services > Marine Repair, Parts & Services
Services > Membership Organizations
Services > Miscellaneous Repair
Services > Other Business Services
Services > Other Miscellaneous Services
Services > Other Personal Services
Services > Other Travel and Transportation
Services > Pet Care & Grooming
Services > Tanning Salons
Services > Travel Agencies
Wholesale/Distribution
Wholesale/Distribution > Durable Goods
Wholesale/Distribution > Non Durable Goods

Discretionary Earnings (Choose 1):
Below $60,000
Above $150,000
Other

Earnings Trend (Choose 1):
Declining Revenues
Sustainable Increases +30%
Non Sustainable Increase
Steady Revenue

Risk Factors:
No Employees, non internet
Industry in Decline
Poor books and records
<3 Yrs in Biz
<1 Yr in Biz

Upside/Low Risk Factors:
SBA Financable
Franchise
Hot Industry
10+ Yrs in Biz


Disclaimer: This tool should only be used as a general indicator of value. There are other factors associated with the sale of a business that can impact the value of a business that only an experienced broker will be able to identify. Please contact us for a more personal evaluation of your business and for suggestions on how to prepare your business for the highest sale possible.