Investment
Business Valuation Multiples Calculator
Estimate your company's value using revenue and EBITDA multiples. Compare against industry benchmarks and public comparables to understand your likely valuation range.
How the Formula Works
Revenue-based valuation: Revenue × Revenue Multiple. EBITDA-based valuation: EBITDA × EBITDA Multiple. The range between these two methods provides a likely valuation band. Revenue multiples are used for high-growth companies (where profitability is deferred); EBITDA multiples are used for profitable businesses. Enterprise value must be adjusted for net debt/cash to get equity value.
When to Use This Calculator
Use this calculator when planning fundraising, evaluating acquisition offers, benchmarking against publicly traded comparables, or sizing potential exits. Multiples vary significantly by industry, growth rate, and market conditions — always calibrate against recent comparable transactions.
Frequently Asked Questions
Which is more important: revenue multiple or EBITDA multiple?
It depends on the company's stage. High-growth companies (50%+ revenue growth) are typically valued on revenue multiples because they prioritize growth over profitability. Mature companies with stable earnings are valued on EBITDA multiples. Most public companies are valued on a blend, with EV/EBITDA being the most common metric for established businesses.
What are typical valuation multiples by industry?
Rough ranges: SaaS/Cloud (5-15x revenue, 20-40x EBITDA), Healthcare (2-5x revenue, 12-18x EBITDA), Manufacturing (1-3x revenue, 6-10x EBITDA), Professional Services (1-3x revenue, 8-14x EBITDA), Retail/Consumer (0.5-2x revenue, 6-12x EBITDA). These vary significantly based on growth rate, margins, market conditions, and competitive position.