Free Valuation Tool

Free Instant Estimate

What Is Your Business Worth Right Now?

Answer 5 simple questions and get a data-driven valuation range in under 60 seconds — based on real market multiples.

$2.3TSMB market annually
3–6×Typical SDE multiple
72%Owners undervalue by

Business Valuation Calculator

Based on IBBA market data & SDE multiple methodology

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  • Applying industry SDE multiples…
  • Analyzing revenue quality factors…
  • Scoring growth & longevity premiums…
  • Calculating valuation range…
Estimated Valuation Range
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SDE Multiple
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Confidence
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Market Demand
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Affiliate Disclosure: This tool is free to use and always will be. To keep it running, we may earn a commission if you connect with a broker through links on this page — at no cost to you. We only partner with brokers we'd recommend to a friend.

Value Driver Scores

Methodology: This estimate uses Seller's Discretionary Earnings (SDE) multiples from IBBA (International Business Brokers Association) market data and BizBuySell transaction reports. Multiples are adjusted for business age, growth trajectory, deal size, and industry buyer demand. This is a directional estimate — not a formal appraisal or broker opinion of value. Actual sale price depends on factors unique to your business, deal structure, and market timing.
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The Method

How This Valuation Works

01

SDE Multiple Framework

Most small businesses ($500K–$10M) sell for 2× to 6× their Seller's Discretionary Earnings — the true cash flow available to an owner. We apply industry-specific multiples from actual transaction data.

02

Industry Adjustments

Multiples differ dramatically by sector. A SaaS business may trade at 4–6× SDE while a restaurant may trade at 1.5–2.5×. Our data reflects current buyer demand in each vertical.

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Quality Score Modifiers

Age, growth trajectory, and revenue quality all adjust the multiple up or down. A 15-year business with growing revenue commands a premium over a 2-year flat business in the same sector.

Common Questions

What Business Owners Ask

Is SDE the same as profit?
Not exactly. SDE (Seller's Discretionary Earnings) adds back the owner's salary, personal perks, depreciation, and one-time expenses to net profit. It represents the true economic benefit of owning the business. Brokers use SDE — not net income — as the valuation basis for most small businesses under $5M.
Why does the calculator show a range instead of a single number?
Because every business is unique. Actual sale price depends on factors like customer concentration, lease terms, employee stability, online reviews, and buyer competition. A range honestly reflects that uncertainty — a professional broker can narrow it with real market comps and current buyer demand.
When is the right time to sell?
The ideal time to sell is when revenue and profits are trending upward — buyers pay a premium for momentum. Many owners wait until they're burned out or face health issues, which often means selling at a trough. If your business is performing well right now, it may be worth quietly exploring your options.
What does a business broker actually do?
A broker markets your business confidentially, finds and qualifies buyers, manages negotiations, and guides the deal to close — typically for a commission on the sale price. For most owners, a good broker returns significantly more than their fee through higher sale price and fewer deals falling apart at the finish line.
Is this tool really free?
Yes, entirely free to use with no signup required. We may earn a referral fee if you choose to connect with a broker through our site — that's how we keep the lights on. See our full Privacy Policy and Terms of Use for details.