Business Valuation Calculator
Estimate business valuation from annual profit and industry multiple.
Estimate only — actual valuation depends on assets, growth, market conditions and due diligence.
Business valuation estimates what a company is worth — essential for selling a business, raising investment, buying a competitor, or estate planning. There is no single "correct" value; different methods yield different results depending on the purpose and buyer type. This calculator implements the three most common valuation approaches: the Earnings Multiple method (most common for SMEs), the Discounted Cash Flow (DCF) method (most theoretically rigorous), and the Asset-Based method (floor value).
📋 How to Use This Calculator
Select your valuation method. For Earnings Multiple: enter net profit (PAT), EBITDA, or revenue and select the appropriate industry multiple. For DCF: enter projected annual cash flows for 5 years, terminal growth rate, and discount rate (WACC). For Asset-Based: enter total assets and total liabilities. The calculator shows the estimated valuation range and explains which method is most relevant for your situation.
💡 Key Facts & Information
India SME valuation multiples (2024): IT services 1–3× revenue or 8–15× EBITDA. Manufacturing 4–6× EBITDA. Retail 0.3–0.8× revenue. SaaS startups 5–15× ARR (depending on growth). Restaurants 3–5× EBITDA. Healthcare clinics 4–8× EBITDA. For startup valuation: pre-revenue use comparable transaction multiples or VC method (Target valuation = Exit value / Expected ROI). Post-revenue: revenue multiples based on growth rate. DCF discount rate for India: risk-free rate (10-year G-Sec ~7%) + equity risk premium (5–7%) + company-specific risk premium (2–5%) = 14–19% for SMEs. Rule of thumb: for a stable profitable SME, 3–5× annual net profit is a common starting point.