Small Business Valuation Calculator
Find how much your small business might be worth!
Business Valuation Calculator
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About Our Small Business Valuation Calculator
Welcome to our Business Valuation Calculator – a user-friendly tool designed to provide a preliminary estimation of your business’s market value. Whether you’re considering selling your business, seeking investment, or simply exploring your company’s financial standing, our calculator offers an insightful starting point.
We combine your financial data with an industry-specific multiplier, fine-tuned by your revenue growth rate. This dynamic approach ensures that our valuation reflects both your business’s current performance and its future prospects.
- Base Valuation from Profit: We start with your annual profit as the core component of the valuation.
- Industry Multiplier: We apply an industry-specific multiplier to your profit. This multiplier reflects typical valuation standards in your chosen industry and forms the base of our valuation model.
- Adjustment for Revenue Growth: The industry multiplier is adjusted based on your revenue growth rate. We use the formula
Multiplier * (1 + Revenue Growth * 1.8)to account for the potential impact of your business’s growth trajectory on its valuation. A higher revenue growth rate leads to a higher multiplier, indicating a higher valuation.
- Revenue Influence: We further adjust the multiplier by incorporating the scale of your business’s revenue. This is done through a logarithmic adjustment (
Math.log10(Revenue) * 0.1). While this adjustment is relatively subtle, it acknowledges that larger revenue streams can positively influence a business’s market value.
Final Valuation and Output:
- The final valuation is the product of your annual profit and the adjusted multiplier.
- The result is formatted in USD currency, making it easily interpretable for a broad range of users.
Purpose & Usage
Our Business Valuation Calculator is ideal for a quick assessment, strategic planning, or preliminary analysis before seeking professional valuation services.
Remember, this tool provides an estimate. For comprehensive business valuation, we recommend consulting with a financial expert.
We’re excited to offer this tool as a stepping stone in your business journey, and we’d love to help you increase that valuation by finding you expert talent with Global Hola.
If you have any questions or need further assistance, feel free to reach out to us!