How it works
How to value a business, the three methods explained
Enter your numbers and Businessappraisal applies a revenue multiple, an EBITDA or SDE multiple, and a discounted cash flow, benchmarks the result against comparable sales, and explains the drivers. Here is exactly what happens at every step.
In one paragraph
To value a business, you estimate what it is worth using several methods and reconcile them into a range. Businessappraisal applies three: a revenue multiple (value as a multiple of revenue), an EBITDA or SDE multiple (value as a multiple of earnings), and a discounted cash flow (the present value of projected future cash). It then benchmarks the result against how comparable businesses at similar scale have recently sold, for example a SaaS company at 40 percent growth commonly trading at 4x to 6x ARR, or a profitable main-street business at 2x to 3x SDE. When the methods agree the range is tight, and when they diverge you see which assumption drives the gap. The result is an educational estimate and a value range, not a certified appraisal.
Enter your financials
Enter your annual revenue, your EBITDA or seller discretionary earnings (SDE), and your growth rate, plus a few details about your industry and model. You do not upload tax returns or connect your accounting software, and the numbers you try in the tool are not stored. Most owners finish in about two minutes.
- Revenue, EBITDA or SDE, growth
- No documents to upload
- Your figures are not stored
The AI applies three methods
Businessappraisal runs a revenue multiple, an EBITDA or SDE multiple, and a discounted cash flow, then pulls comparable-sale benchmarks for businesses like yours at similar scale. It weights the methods by what fits your model, leaning on the revenue multiple and DCF for high-growth SaaS, and on the SDE or EBITDA multiple for a profitable owner-operated business.
- Revenue multiple, EBITDA or SDE, DCF
- Comparable-sale benchmarks
- Weighted by your model
Get your value range
You get a headline figure with a low to high value band, plus a breakdown of what each method produced. A single point estimate is false precision, so Businessappraisal always shows the range. You can see how the estimate moves as you adjust assumptions like growth or margin.
- Headline figure and a range
- Each method broken out
- Adjustable assumptions
See the drivers explained
You get plain-English reasons the number is what it is, and the value drivers that would move it up or down, such as recurring revenue, customer concentration, owner dependence, and growth. You leave knowing what to improve before you go to market, not just a figure.
- Plain-English drivers
- What moves the number
- What to improve before selling
Be clear on this
An educational estimate, not a certified appraisal
We are transparent about what this is and what it is not. Businessappraisal is the decision-support layer you use before a formal valuation, not a replacement for one.
What it is
A fast, transparent, educational estimate of what your business is likely worth, and why. It triangulates three methods, shows the comparable sales behind the multiple, and explains the drivers, so you understand your number before you pay for a formal engagement.
What it is not
It is not a certified appraisal, a USPAP-compliant valuation, a fairness opinion, or financial, investment, tax, or legal advice. It is not a promise of what your business will sell for. The actual price depends on the buyer, the deal terms, and diligence.
When to get a formal valuation
For tax, ESOP, SBA lending, litigation, divorce, or a 409A, engage a credentialed appraiser (ABV, CVA, or ASA). Use Businessappraisal first to understand the range and the drivers, so that engagement starts from an informed position.
See it live
Watch a valuation settle in one slip
Estimated business value
Method breakdown
What moves this number
Estimate, not a certified appraisal. Your figures are not stored.
Explore the methods
Find out what your business is worth
Enter your numbers and get an estimate from three methods in minutes, benchmarked against comparable sales, with the drivers explained. Transparent pricing, cancel anytime.