Business Valuation Calculator

How would buyers value your business?

Most owners have blind spots about their valuation. Our advisor-validated tool gives you a realistic starting point.

Last 12 Months Revenue

Last 12 Months Net Profit Before Tax

Includes your salary

How have profits grown annually over the last 3 years?

What percentage of your revenue is repeat or recurring in nature?

What percentage of your revenue comes from your top five customers?

Does your business operate in or sell to a highly regulated industry?

What are your future plans for your involvement in the business?

Company Name

Your Role

First Name

Last Name

Email Address

Phone Number

When do you plan to sell your business?

Are you curious about Axial’s offerings for owners?

How did you hear about us?

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The valuation estimates provided by Axial's calculator are for informational purposes only and should not be considered financial, legal, or investment advice. The calculator uses a simplified methodology and does not account for specific factors that can further affect a business valuation. Estimates are based on user inputs, generalized assumptions, and the expectation that the business will continue as a going concern. For a more accurate and detailed valuation, consult a qualified M&A advisor or financial professional. Axial assumes no liability for any decisions made based on the results of this calculator.

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Estimated Revenue Multiple 0.00x - 0.00x

Estimated Net Profit Multiple 0.00x - 0.00x

Summary Table

12 Months Revenue $0

12 Months Net Profit Before Tax $0

Industry —

How have profits grown annually over the last 3 years? —

What percentage of your revenue is repeat or recurring in nature? —

What percentage of your revenue comes from your top five customers? —

Does your business operate in or sell to a highly regulated industry? —

What are your future plans for your involvement in the business? —

Estimated Valuation Range

Please note that this estimated range is intended to provide a basic indication of your business’s most probable selling price. Several additional factors can further influence your business’s valuation:

Business Valuation Factors

Macroeconomic Conditions

Size of Business

Historic Financial Stability

Capital Expenditures (CAPEX)

Working Capital Efficiency

Customer Contracts

Business Model

Product/Service Offering

Resulting In Higher Valuations

Operates well in both stable and volatile macroeconomic environments

Larger business with economies of scale, broader market reach, and diversified operations

Business has consistent, predictable recurring revenue streams or high-profit margins

Low CAPEX requirements, allowing for higher cash flow

Low net working capital needs, optimizing cash use

Long-term contracts with clients, ensuring stable future income

Highly scalable business model with the ability to expand quickly

Differentiated products/services, with patents, trademarks, or barriers to entry

Resulting In Lower Valuations

Highly sensitive to economic downturns, facing reduced demand during recessions

Smaller business with limited market share, and higher operational risks

Irregular revenue with low or volatile profit margins

High CAPEX needs, reducing available cash flow for growth

High working capital needs, tying up cash in inventory and receivables

Lack of formal agreements or contracts with clients, leading to uncertainty

Limited scalability, constrained by resources or infrastructure

Lacks product/service differentiation; no unique market moat

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Axial’s exit consultants introduce you to the right M&A advisor to help you secure the best terms for your business sale. With more than 15 years of unparalleled access to the small business M&A landscape, we have the largest network of pre-vetted M&A advisors and the right resources to guide you through every step of your exit journey.

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Forecasting Cash Flows

The tool estimates your future profits using net profit as the starting point, along with other key indicators, to project conservative, realistic, and optimistic scenarios for your business.
Adjusting For Time

Because $1 today is worth more than $1 tomorrow, future cash flows are discounted to reflect their true value after accounting for time, risk, and inflation.
Finding Your Valuation

Adding the discounted cash flows reveals your business’s present value. The tool does this for all three growth scenarios so you get a clear valuation range - real numbers and multiples.

Beyond the Calculator: Market Comparables

The calculator estimates your value from your own business's numbers. Comparables show what buyers actually agreed to pay for similar private companies, based on verified deal data.

Explore Market Comparables

Common Questions Answered

Business valuation is a complex process that involves a comprehensive analysis of your business, considering financial statements, market conditions, industry trends, and specific factors such as revenue, EBITDA, and growth potential. The most common valuation methods include:

Market Comparables: Evaluating the trading prices of similar businesses in your industry to benchmark your company’s value.
Discounted Cash Flow (DCF): Projecting future cash flows and calculating their present value based on an appropriate discount rate.
Precedent Transactions: Reviewing the valuations of actual businesses that were recently sold to provide a realistic estimate.

For a deeper dive into these valuation methods, check out our article, How to Value a Company for Sale.

Valuation is more than just numbers - it captures the story, potential, and strategic value of your business. Here are six critical considerations that also shape your business's worth during an Exit:

Valuation is a balance of numbers and perception: Ultimately, the price of a business is shaped by buyer perceptions and willingness to pay. These factors are influenced by timing, trends, and market conditions. Each buyer brings a unique perception based on their goals.
Beauty lies in the buyer’s perception: Buyers focus on data, risks, and growth potential - not emotional attachments. It's essential to bridge the gap between your sentimental value for your business and the market’s assessment.
Targeting the right buyer yields better returns: Buyers who value specific aspects of your business are more likely to offer a premium compared to those seeking general investments.
Business size and stability shape value: Larger businesses with recurring revenue and scalable operations typically command higher valuations, as they represent lower risks and greater growth potential.
True comparisons require true parallels: Valuation benchmarks are meaningful only when businesses are similar in industry, size, and growth stage. Irrelevant comparisons, such as a friend receiving a higher valuation for their unrelated business, can lead to unrealistic expectations.
The deal structure matters: The overall worth of a deal depends not just on the headline price but also on payment terms, such as upfront cash versus deferred payouts. All cash for a lower valuation could be just as appealing as less cash at a higher valuation.

Axial’s calculator evaluates your business based on its ability to generate future cash flows, using net profit as a key indicator or proxy for cash flow. Alongside net profit, the calculator considers additional inputs like revenue, industry classification, historical growth rates, and qualitative factors, including:

Profitability Comparison: How do your profits stack up against competitors?
Customer and Employee Dependence: Is your business reliant on a few key customers or team members?
Industry Dynamics: Does your business operate in or sell to a heavily regulated industry?

Each of these factors are carefully weighted to estimate your business’s future performance and provide a realistic valuation range from conservative to optimistic scenarios.

Note: While Axial’s calculator offers a helpful estimate, it’s essential to consult with a professional valuation expert for a precise assessment of your business’s value.

We suggest adding estimates where needed. Keep in mind that more accurate inputs will produce better results.

The valuation results offer a solid foundation for estimating your business's worth.

However, when preparing to sell, it’s essential to engage an experienced M&A advisor. They can perform a comprehensive valuation analysis and help you navigate the complexities of the sale process, ensuring you maximize value and achieve your goals.

Yes. Axial has a network of over 2,000 investment banks and advisory firms specializing in helping business owners determine their business valuation and navigate the process of selling their companies. We connect qualified business owners with the most relevant advisors for them completely free of charge.

If you'd like to get connected with an expert, you can submit your request here.