How accurate is this business valuation calculator?

It gives a directional educational range, not an appraisal. It applies typical EBITDA (or revenue) multiples from real, sourced comparable transactions in your sector to the figures you enter. A real valuation depends on your quality of earnings, growth, customer concentration, and buyer competition — which a prepared process establishes.

What multiple is my business worth?

Most lower-middle-market companies trade on a multiple of adjusted EBITDA, commonly in the low-single to high-single digits depending on sector, size, growth, and margins. Recurring revenue, low customer concentration, and clean financials push the multiple up. The calculator shows a sector-specific range.

Do I need EBITDA to use it?

No — revenue alone gives a rough range. But entering adjusted EBITDA (earnings normalized for one-time and owner-specific items) produces a sharper estimate, because most buyers price lower-middle-market businesses on an EBITDA multiple rather than revenue.

Is this an appraisal or an offer?

No. It is an educational estimate generated from public comparable-transaction data and standard methods. It is not an appraisal, a fairness opinion, or an offer, and it does not predict the price a specific buyer will pay. Consult your own advisors before making decisions.

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What is my business worth?

Get an instant, educational enterprise-value range built from real transaction comps in your industry. No account, no email required to see your number.

How the estimate works

Most private companies in the lower middle market are valued on a multiple of adjusted EBITDA — earnings normalized for one-time and owner-specific items. This tool pulls the range of enterprise-value-to-EBITDA multiples from real, publicly sourced comparable transactions in your sector and applies it to the figures you enter. When you provide revenue only, it falls back to a rougher revenue multiple. It is deliberately conservative and clearly an educational estimate — the real number comes from financial due diligence and a competitive process.

Browse the underlying data: M&A multiples by industry. Learn more: how business valuation multiples work · what financial due diligence is.

A worked example

Take an illustrative business services company with $12.0M of revenue and $1.8M of adjusted EBITDA. The calculator finds the 15 sourced business services transactions closest to that size and takes their 25th percentile, median and 75th percentile EV/EBITDA multiples: 5.0×, 6.1× and 7.8×.

Point in the range	Multiple	Enterprise value
Low (25th percentile)	5.0×	$9.1M
Middle (median)	6.1×	$11.0M
High (75th percentile)	7.8×	$14.0M

Enterprise value is not what lands in the owner’s account. Debt is repaid and cash usually stays with the seller (cash-free, debt-free), the price is adjusted against a working-capital target, and fees and taxes come off before the net proceeds.

Multiples the calculator draws on

Median trailing EV/EBITDA for lower-middle-market deals (targets at or below $25M of EBITDA), with the middle half and the number of sourced transactions, data as of October 2026. The calculator narrows each sector to deals near the size you enter, so its range can differ from the sector-wide figures below.

Industry	Median	Middle half	n	Run it
Aerospace & Defense	10.5×	9.3–13.0×	18	Use it
Industrials & Manufacturing	7.5×	6.0–10.0×	69	Use it
Software & Technology	7.8×	6.7–10.0×	22	Use it
Healthcare	8.8×	6.1–11.5×	23	Use it
Consumer & Food	8.5×	6.0–12.0×	25	Use it
Business Services	7.8×	5.6–10.0×	29	Use it
Distribution & Logistics	7.0×	5.2–8.0×	29	Use it
Construction & Engineering	6.3×	5.0–8.5×	28	Use it
Packaging & Plastics	7.0×	5.7–8.9×	14	Use it
Energy & Utilities	6.2×	4.6–8.8×	23	Use it

What the calculator cannot see

Two companies with the same EBITDA in the same industry can sell for very different prices. A buyer’s multiple moves with what the numbers alone do not show:

Which adjustments to EBITDA survive a buyer’s due diligence.
How much revenue recurs and how much rests on a few large customers.
Whether the business runs without its owner.
Size itself: smaller companies usually trade at lower multiples.
How the price is paid: cash at close, earnouts, seller notes or rollover.

Frequently asked questions

How accurate is this business valuation calculator?: It gives a directional educational range, not an appraisal. It applies typical EBITDA (or revenue) multiples from real, sourced comparable transactions in your sector to the figures you enter. A real valuation depends on your quality of earnings, growth, customer concentration, and buyer competition — which a prepared process establishes.
What multiple is my business worth?: Most lower-middle-market companies trade on a multiple of adjusted EBITDA, commonly in the low-single to high-single digits depending on sector, size, growth, and margins. Recurring revenue, low customer concentration, and clean financials push the multiple up. The calculator shows a sector-specific range.
Do I need EBITDA to use it?: No — revenue alone gives a rough range. But entering adjusted EBITDA (earnings normalized for one-time and owner-specific items) produces a sharper estimate, because most buyers price lower-middle-market businesses on an EBITDA multiple rather than revenue.
Is this an appraisal or an offer?: No. It is an educational estimate generated from public comparable-transaction data and standard methods. It is not an appraisal, a fairness opinion, or an offer, and it does not predict the price a specific buyer will pay. Consult your own advisors before making decisions.