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Business valuation range calculator

A common first look at a Main Street asking price is SDE times a multiple. This calculator shows a low, midpoint, and high value from multiples you control.

Starting defaults are 2.0× and 3.3×, the broad band of average earnings multiples BizBuySell has published across popular sectors. Change them if you have comps.

How to use this calculator

  1. Enter a recast SDE, not just the number in the listing.
  2. Start with the default multiples, 2.0× and 3.3×, or replace them with comps your broker has for similar businesses in your area.
  3. Read the low, midpoint, and high values as a range, then compare the asking price with it.
  4. If the asking price sits above the high end on a conservative SDE, ask why — contracts, growth, or just a hopeful listing.

These multiples are starting defaults you can edit. They are not a published comparable for any one trade. They follow the broad band of average earnings (SDE) multiples in BizBuySell’s public industry-multiples report (about 2.0× to 3.3× across popular sectors, overall average about 2.58×, based on reported sales from the third quarter of 2021 through the second quarter of 2026). See the BizBuySell industry valuation multiples page for the current tables. Individual businesses trade above and below that band.

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FAQ

Why start at 2.0× to 3.3×?

That is the range of average earnings multiples BizBuySell has reported across popular sectors in its public multiples tables, not a forecast and not a comp for your street. You should change the inputs when you have better data.

Should I use revenue multiples instead?

For most small owner-operated businesses, a multiple of cash flow (SDE) is more useful than a multiple of revenue, because two shops with the same sales can have very different take-home cash.

Do bigger businesses get higher multiples?

Often, yes. Larger, less owner-dependent cash flow can support a higher multiple, and very small or risky shops can sit below the averages. Size, concentration, and transfer risk matter more than the industry label alone.

Is the midpoint a fair price?

Not by itself. It is just the average of the two multiples you typed. Price still depends on the quality of the SDE, the lease, the people, and the work you will have to put in.

Disclaimer. Deal Check is not financial, legal, or accounting advice. These pages and calculators are educational planning tools and can miss context. Verify every number with a CPA and a business broker, and do your own due diligence before making an offer.