Business Valuation Calculator

Common methods: Revenue multiple (0.5–3x annual revenue depending on industry and growth), EBITDA multiple (4–10x for stable SMBs, 10–20x for high-growth businesses), Discounted Cash Flow (DCF for businesses with predictable cash flows), and Net Asset Value (for asset-heavy businesses). Use multiple methods and triangulate.

EBITDA multiples for Indian services: IT services 8–15x, consulting 5–8x, marketing agencies 4–7x, healthcare services 6–12x, education 5–10x, logistics 4–7x. High-growth businesses (30%+) command premium multiples. Businesses with customer concentration (top 3 clients over 50% revenue) face discounts.

Key value drivers: recurring revenue (3–5x premium over project-based), customer diversification, strong management team independent of the owner, documented SOPs, growing addressable market, intellectual property, long-term contracts, EBITDA margin above 20%, and clean audited accounts for 3+ years.

Start 2–3 years before exit: clean up books and get CA-audited financials, reduce owner dependency (hire a professional CEO or COO), build recurring revenue streams, document all processes, diversify the customer base, and resolve any pending legal or regulatory issues.

Pre-money valuation is your business's value before new investment. Post-money = Pre-money + Investment amount. If your business is valued at ₹5 crore pre-money and an investor puts in ₹1 crore, post-money valuation is ₹6 crore and the investor owns 16.7%.