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Business Valuation Calculator
Small businesses typically valued 2–5x SDE; service businesses lower, recurring revenue higher.
Indicated value
$1,275,000
Adjusted SDE
$425,000
Low end value
$1,062,500
How the math works
Adjusted SDE = SDE + add-backs. Value = SDE × multiple × (1 − risk discount).
($350k + $75k) × 3 = $1.275M indicated value. Low end (×2.5) = $1.0625M.
How to Use
- Enter annual sde.
- Enter industry multiple.
- Enter add backs.
- Enter discount for risk %.
- Read indicated value.
Frequently Asked Questions
Small business valuation multiples?
SDE (seller's discretionary earnings) multiples: service business 1.5–3.0x, retail 2–4x, manufacturing 2.5–4.5x, restaurant 1.5–2.5x, e-commerce 2.5–4.0x, SaaS 4–10x ARR. EBITDA multiples: $1M–5M EBITDA businesses 4–7x. Larger ($5M+ EBITDA) 6–10x+. Recurring revenue, owner-independence, growth, customer concentration drive multiple. Asset-based: book value floor for asset-heavy businesses. Income approach: DCF for predictable cash flow. Market approach: comparables.
How does this fit small business finance?
Small business owners use this calculator alongside cash flow forecast, P&L, balance sheet, and tax projection. Pair with industry benchmark data (RMA, BizMiner, IBISWorld). Decision framework: ROI > capital cost + risk premium > minimum threshold for owner time. Single calculator output is one input — owner intuition + market knowledge + financial discipline complete the picture.
SBA financing fit?
SBA 7(a): up to $5M, working capital, equipment, real estate, business acquisition, longer terms. SBA 504: real estate + equipment, fixed rate, 10–25 years. SBA Express: up to $500k, faster. SBA Microloan: up to $50k. Owner-occupied real estate (51%+ owner use) qualifies. Personal guarantee required. SBA fees: 2–3.75% of guaranteed portion.
When is this worth pursuing?
Small business decisions weighing capex, hiring, expansion, financing should consider: ROI threshold (typically 20%+ for owner risk), payback period (under 3 years preferred), cash flow coverage, opportunity cost vs alternatives. Calculator outputs inform but don't decide — owner judgment about market, competition, and execution capacity is what makes the call.
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