Business Valuation Calculator

Do you know what your business is worth?

At Exit Promise, we believe as the owner of a business knowing what your business is worth puts you squarely in control of the selling process.

And it’s for this reason, we offer an online business valuation calculator to help you determine the value of your business.

Did we mention, our business valuation calculator is free?   

To calculate the estimated value of your business, enter the information in the boxes below and our calculator will do the computing for you.

Our valuation calculator makes the process of determining the value of your business straightforward. This calculator is based on the Discounted Cash Flow Method which establishes the value of your business as an income-producing asset or investment.

The Discounted Cash Flow Method of valuing a business for sale offers the seller a compelling way to show how the income stream derived from the business projected into the future translates into value for the buyer.

If you need assistance as you’re entering your financial data into the calculator, check out our business valuation tutorial here. 

Start your Business Valuation here:

  • Step One: Projecting Cash Flow Based on the Company's Past Performance
  • The Discounted Cash Flow business valuation method is based upon an accurate projection of the future cash flow stream based on past financial performance. The most commonly used income stream for this valuation method is the net cash flow. Step One requires you to gather the financial data for the past three years:
  • MM slash DD slash YYYY
  • Enter Total Sales for each year below:

  • Hidden
    Sales
  • Hidden
    Sales
  • Hidden
    Sales
  • Enter Cost of Goods Sold for each year below:

  • Hidden
    Cost of Goods Sold
  • Hidden
    Cost of Goods Sold
  • Hidden
    Cost of Goods Sold
  • Hidden
  • Hidden
  • Hidden
  • Enter Total Operating Expenses for each year below:

  • Hidden
    Operating Expenses
  • Hidden
    Operating Expenses
  • Hidden
    Operating Expenses
  • Hidden
  • Hidden
  • Hidden
  • Enter Depreciation and Amortization Expenses for each year below:

  • Hidden
    Depreciation
  • Hidden
    Depreciation
  • Hidden
    Depreciation
  • Enter Interest Expense for each year below:

  • Hidden
    Interest
  • Hidden
    Interest
  • Hidden
    Interest
  • Hidden
  • Hidden
  • Hidden
  • Enter Total Gross Compensation for all Officers paid via payroll (Gross W-2 wages) for each year below:

  • Hidden
    Officer's Compensation
  • Hidden
    Officer's Compensation
  • Hidden
    Officer's Compensation
  • Enter the Salary for all Officers which is typically paid within your business' industry for each year below:

  • Hidden
    Officer's Salary Adjustment
  • Hidden
    Officer's Salary Adjustment
  • Hidden
    Officer's Salary Adjustment
  • Enter any non-recurring income received each year below:

  • Hidden
    One time Income
  • Hidden
    One time Income
  • Hidden
    One time Income
  • Enter any non-recurring or non-operating expenses for each year below:

  • Hidden
    One time Expenses
  • Hidden
    One time Expenses
  • Hidden
    One time Expenses
  • Hidden
  • Hidden
  • Hidden
  • Step Two -- Determining How Much Risk is Inherent in Your Business
  • Since running a small business is generally riskier than investing in government securities, it requires a higher rate of return to compensate you (or a new owner of your business) to accept this higher level of risk. Under the assumption that your business is transferred to a new owner under a 100% equity purchase agreement, in step two we will compute the discount rate which represents the required rate of return for your business based on how much risk is inherent in your business.
  • Select your business' primary industry.
  • For each risk factor below, select the value that best describes your company at the present time. The value to be on a scale of 1-to-10 with the risk being low at 1 and high at 10:
  • Scale: [0-4] - Revenue growth exceeds industry average [5] - At industry average [6-10] - Below industry average
  • Scale: [0-4] - No debt or very little debt on books [5] - Average debt on books for industry [6-10] - Highly leveraged company
  • Scale: [0-4] - Low cost, scaleable operation [5] - Average cost of operations [6-10] - High costs, large investment required to expand
  • Scale: [0-4] - Above average profitability [5] - Average profitability [6-10] - Below average profitability
  • Scale: [0-4] - Diverse customer base [5] - Average customer base [6-10] - A few customers account for most revenue
  • Scale: [0-4] - Rich product mix [5] - Average product mix [6-10] - A few products generate most revenue
  • Scale: [0-4] - National/International market reach [5] - Regional market reach [6-10] - Local market only
  • Scale: [0-4] - Large number of small competitors [5] - A few large competitors [6-10] - Rapid industry consolidation
  • Scale: [0-4] - Professional management team [5] - Non-owner managers [6-10] - Owner is the only manager
  • Scale: [0-4] - Skilled, longer-term staff [5] - Some long-term employees [6-10] - Low-skilled staff, high turnover
  • This field is for validation purposes and should be left unchanged.
>

Pin It on Pinterest

Share This