Business Valuation Multiples Calculator
Calculate your business valuation using revenue and EBITDA multiples. Compare methods to arrive at a defensible range for fundraising, acquisition, or exit planning.
📊 Business💼 Valuation = Revenue * Multiple or EBITDA * Multiple
Business type
Annual revenue ($)
EBITDA ($, if known)
Annual growth rate (%)
Please enter valid values.
Formula & Reference
| Variable | Formula | Units |
|---|---|---|
| Business Valuation Multiples Calculator | Valuation = Revenue * Multiple or EBITDA * Multiple | $ range |
Step-by-Step Examples
Example 1
SaaS Business
$2M ARR, $400k EBITDA, 30% growth rate.
- Revenue multiples (SaaS): 3-8x with growth premium
- Revenue valuation: ~$7.8M - $20.8M
- EBITDA 10-20x: $4M - $8M
- Acquirer type determines which method dominates
✓ Revenue: $7.8M-$20.8M | EBITDA: $4M-$8M
Example 2
Professional Services
$3M revenue, $600k EBITDA, 15% growth.
- Revenue multiples: 0.5-1.5x with growth adj.
- Revenue valuation: $1.7M-$5.2M
- EBITDA 5-8x: $3M-$4.8M
- EBITDA method typically dominates for services
✓ Revenue: $1.7M-$5.2M | EBITDA: $3M-$4.8M
Example 3
E-commerce Store
$5M revenue, $500k EBITDA, 20% growth.
- Revenue: 0.5-2x = $2.9M-$11.5M (with 15% growth adj)
- EBITDA 4-10x = $2M-$5M
- Buyer type affects which multiple applies most
✓ Revenue: $2.9M-$11.5M | EBITDA: $2M-$5M
Real-World Applications
Fundraising
Anchor investor conversations with a credible valuation range backed by comps.
Exit Planning
Know your likely value range to decide on acquisition timing.
M&A
Both buyers and sellers use multiple-based valuation as a starting negotiation anchor.
Financial Planning
Valuation targets inform option strike prices and equity grant sizing.
Common Mistakes to Avoid
⚠️
Using a single multiple without a range
Valuation is always a range. Present low/mid/high to maintain credibility in negotiation.
⚠️
Applying SaaS multiples to service businesses
SaaS with recurring revenue and high margins commands dramatically higher multiples than equivalent-revenue services firms. Never cross-apply multiples across business models.
⚠️
Ignoring growth rate in multiple selection
A 60% growth SaaS commands 2-3x higher multiples than a 10% growth SaaS. Growth rate is the primary driver of multiple expansion.
Frequently Asked Questions
What determines which multiple applies? ▾
Growth rate (higher growth = higher multiple), revenue quality (recurring > transactional), gross margin, customer concentration, team depth, and market size all affect where within the range you land.
Current SaaS valuation multiples? ▾
Post-2021 correction: solid growing SaaS typically 5-12x ARR. High-growth (50%+) commands 10-20x. Slow or declining SaaS may get 3-5x ARR.
Why do services businesses get lower multiples? ▾
Services have lower gross margins, depend heavily on key individuals, don't scale as well, and have project-based rather than recurring revenue. Recurring revenue commands premium multiples.
Revenue vs EBITDA multiple - which is right? ▾
For high-growth businesses (especially SaaS): revenue multiples. For profitable, stable businesses: EBITDA multiples. For distressed or turnaround situations: asset-based valuation.
How do I increase my valuation multiple? ▾
Convert transactional to recurring revenue, improve gross margin, accelerate growth rate, reduce customer concentration risk, and build management team depth beyond the founder.