Indicative Valuation Range and Business Valuation Calculator

FreeAbout three minutesValue, exit and funding

What it does

Produces an indicative value range from your adjusted earnings and an industry multiple, with the factors moving you up or down it.

How it helps

Most owners have never seen a number for their business until they need one. This gives you a planning figure today and shows which drivers, like recurring revenue and owner reliance, are shaping it.

How this benchmark is calculated

The band shown is an indicative ProfitPulse benchmark, based on the internal commercial ranges we work with every day. It is a directional read, not a formal industry survey and not financial advice. The range shifts with your broad industry category, your size and your commercial complexity.

In about three minutes, free, you will see an indicative enterprise value range from their adjusted earnings and an industry multiple band, with the factors moving them up or down it.

Indicative Valuation Range

Answer a few quick questions to see where you stand.

How the valuation range is calculated

The formula

Indicative value = adjusted earnings times an industry multiple, where adjusted earnings add back any owner pay above a market wage.

Worked example

EBITDA of 500,000 dollars plus a 100,000 dollar owner add back gives adjusted earnings of 600,000 dollars. At an indicative 3.0 to 4.0 times, that points to roughly 1.8 to 2.4 million dollars.

What each figure means

EBITDA for the last 12 months: Profit before interest, tax, depreciation and amortisation. If unsure, use net profit before tax and we will treat the result as indicative.
Owner salary above market rate included in costs: Any salary you pay yourself above a market wage for the role, which a buyer would add back to earnings.

Common questions

What earnings should I use?

Use EBITDA, then add back any owner pay above a market wage. If unsure, net profit before tax is a fair starting point.

Why is it a range, not one number?

Value depends on drivers like recurring revenue, customer spread and owner reliance, which move the multiple up or down.

Is this a formal valuation?

No. It is a planning figure. A formal valuation builds a defensible number with evidence a buyer or lender accepts.