Revenue & EBITDA Multiple Valuation Calculator
Estimate a business valuation from a revenue multiple or an EBITDA multiple, and see the implied value the other way for a sanity check.
How it works
Revenue valuation = annual revenue × revenue multiple · EBITDA valuation = annual EBITDA × EBITDA multiple
Multiple-based valuation prices a business as a multiple of a headline number — either revenue or EBITDA. Revenue multiples suit high-growth or pre-profit companies where earnings are not yet meaningful; EBITDA multiples suit established, profitable businesses because they reflect actual cash earnings. Cross-checking one against the other (the implied multiple) guards against a valuation that looks reasonable on one metric but absurd on the other.
Worked example
A business with $2,000,000 revenue valued at a 3× revenue multiple is worth $6,000,000. If its EBITDA is $400,000, that price is also 15× EBITDA — high, which is a flag to revisit the multiple or the growth story behind it.
Frequently asked questions
When should I use revenue vs EBITDA multiples?
Use revenue multiples for fast-growing or not-yet-profitable companies where earnings are small or negative. Use EBITDA multiples for mature, profitable businesses, since EBITDA reflects real operating cash and normalises for debt and tax differences.
What multiples are typical?
They vary enormously by industry, size and growth. Small private businesses often trade at 3–6× EBITDA, while high-growth software can command double-digit revenue multiples. Use recent comparable transactions in the same sector as your anchor.
Why check the implied multiple?
A price that seems fair as a revenue multiple can imply an unrealistic EBITDA multiple, or vice versa. Viewing both keeps the valuation grounded — if the implied multiple is far outside industry norms, the assumption behind it deserves a second look.
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Educational estimate, not financial advice.