Estimate what your business could be worth using multiple approaches favored by buyers and lenders in Canada. Select your industry, enter revenue, EBITDA or SDE, and adjust growth and risk factors to see a low, base, and high valuation range.
What this calculation represents
This calculator estimates enterprise value using four common private market methods. EBITDA and SDE multiples capture current earnings power. Revenue multiples help for high growth models where profit is reinvested. The discounted cash flow method estimates value from future free cash flows and a terminal value. Use the low and high ends to frame negotiation ranges and the base value as a directional midpoint. This is educational and not a formal appraisal.
High end tends to apply when
- Diversified customers and stable recurring revenue
- Defensible IP or brand with audited financials
- Strong growth with improving margins
Low end tends to apply when
- Customer or supplier concentration risk
- Owner dependent operations without a management bench
- Flat or declining revenue or margins
How to use this calculator
- Select your industry to load typical valuation multiples. Choose Other if none fit closely.
- Enter financials including revenue and EBITDA. Add SDE if you are an owner operator.
- Set assumptions for stage, growth, and discount rate. These affect DCF and multiple adjustments.
- Toggle Risk and Quality factors like recurring revenue and IP. These will nudge multiples up or down.
- Click Calculate to see Low, Base, High, and a Blended estimate. Use this as a planning guide.
- Refine by testing different assumptions and capturing screenshots for internal planning or lender discussions.
Tip. Keep records clean. Buyers and lenders value accurate financial statements, diversified revenue, and documented processes.
Business Valuation FAQs
What is a business valuation
A structured estimate of company value using earnings, revenue, and cash flow approaches like EBITDA multiples, SDE multiples, revenue multiples, and DCF.
Which valuation method is best for small businesses
EBITDA or SDE multiples are most common for profitable owner operated businesses. Revenue multiples are common for software or fast growth models. DCF helps when forecasts are reliable.
What are typical valuation multiples by industry
Ranges vary by sector, size, and growth. This calculator loads conservative baseline ranges per industry and adjusts for stage and risk.
What is the difference between SDE and EBITDA
SDE adds back a single owner’s compensation and certain discretionary or one time expenses. EBITDA removes interest, taxes, depreciation, and amortization to show operating earnings.
How accurate are online valuation calculators
They are directional for planning and education. Actual outcomes depend on diligence, contracts, size, growth durability, financial quality, and buyer appetite.
Why do recurring revenue and strong IP boost valuation
They improve predictability and reduce perceived risk, which supports higher multiples and lower discount rates.
Does company size impact multiples
Yes. Larger companies tend to command higher multiples due to lower risk and deeper buyer pools.
How do growth and discount rate affect DCF
Higher growth increases future cash flows while a higher discount rate reduces present value. Both can materially swing the estimate.
Can I use this valuation for financing
Use it to frame discussions. Lenders primarily look at DSCR, collateral, time in business, and financial statements.
What documents should I prepare before selling
Three years of financials, contracts, concentration metrics, KPIs, organizational chart, and a transition plan that reduces owner dependency.
How often should I update my valuation
Review quarterly or after material changes such as a new contract, product launch, or major customer movement.
What is a typical buyer diligence period
Commonly 30 to 90 days depending on size and complexity. Prepared data rooms and documentation speed up the process.
What is enterprise value vs equity value
Enterprise value reflects total operating value before net debt. Equity value is enterprise value minus net debt plus non operating assets.
Do macro conditions affect multiples
Yes. Rates, credit availability, and sector sentiment can expand or compress multiples in the private markets.
Can negative EBITDA companies be valued here
Yes via revenue multiples and scenario testing in DCF, but results are more sensitive to assumptions.
