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Business Valuation Calculator

Business

Estimate a business valuation using a simple revenue multiple method.

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$0.00$1,000,000,000.00
0.120

Estimated Valuation

$1,000,000

An estimated business valuation, using a revenue multiple method.

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Odeh Ahwal

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Odeh Ahwal
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Frequently Asked Questions

What is a typical revenue multiple?

It varies enormously by industry and growth rate, but many small service businesses sell for 0.5 to 1.5 times annual revenue, while high-growth software companies can command multiples well above 5 times revenue.

Is revenue multiple a reliable valuation method on its own?

No, it is a quick rough estimate only — proper valuations also weigh profitability, growth trajectory, customer concentration, and industry comparables, often using multiple valuation methods together.

Why might two businesses with the same revenue have very different valuations?

Profit margin, recurring versus one-time revenue, customer retention, and growth rate all significantly affect buyer perception of risk and future potential, which drives the multiple a buyer is willing to pay well beyond revenue alone.

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