.bv-calc-header { text-align: center; margin-bottom: 30px; }
.bv-calc-header h2 { color: #1a237e; font-size: 28px; margin-bottom: 10px; }
.bv-calc-header p { color: #546e7a; font-size: 16px; }
.bv-calc-grid { display: grid; grid-template-columns: 1fr 1fr; gap: 20px; margin-bottom: 25px; }
@media (max-width: 600px) { .bv-calc-grid { grid-template-columns: 1fr; } }
.bv-input-group { display: flex; flex-direction: column; }
.bv-input-group label { font-weight: 600; color: #37474f; margin-bottom: 8px; font-size: 14px; }
.bv-input-group input, .bv-input-group select { padding: 12px; border: 2px solid #cfd8dc; border-radius: 6px; font-size: 16px; transition: border-color 0.3s; }
.bv-input-group input:focus { border-color: #3949ab; outline: none; }
.bv-calc-btn { width: 100%; padding: 15px; background-color: #1a237e; color: white; border: none; border-radius: 6px; font-size: 18px; font-weight: bold; cursor: pointer; transition: background 0.3s; margin-top: 10px; }
.bv-calc-btn:hover { background-color: #283593; }
#bv-result-container { margin-top: 30px; padding: 25px; border-radius: 8px; background-color: #f5f7f9; display: none; border-left: 5px solid #1a237e; }
.bv-result-label { font-size: 16px; color: #546e7a; margin-bottom: 5px; }
.bv-result-value { font-size: 32px; font-weight: 800; color: #1a237e; }
.bv-breakdown { margin-top: 15px; font-size: 14px; color: #455a64; line-height: 1.6; }
.bv-article { margin-top: 40px; border-top: 1px solid #eee; padding-top: 30px; color: #333; line-height: 1.8; }
.bv-article h3 { color: #1a237e; font-size: 22px; margin-top: 25px; }
.bv-article p { margin-bottom: 15px; }
.bv-article ul { margin-bottom: 15px; padding-left: 20px; }
function calculateBusinessValue() {
var profit = parseFloat(document.getElementById('bv_profit').value);
var multiple = parseFloat(document.getElementById('bv_multiple').value);
var assets = parseFloat(document.getElementById('bv_assets').value) || 0;
var liabilities = parseFloat(document.getElementById('bv_liabilities').value) || 0;
var resultContainer = document.getElementById('bv-result-container');
var resultValue = document.getElementById('bv_total_value');
var resultBreakdown = document.getElementById('bv_breakdown');
if (isNaN(profit) || isNaN(multiple)) {
alert("Please enter at least the Annual Profit and Industry Multiple.");
return;
}
// Calculation: (Earnings * Multiple) + Net Assets
var earningsValue = profit * multiple;
var netAssets = assets – liabilities;
var totalValue = earningsValue + netAssets;
// Format as Currency
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
maximumFractionDigits: 0
});
resultContainer.style.display = 'block';
resultValue.innerText = formatter.format(totalValue);
resultBreakdown.innerHTML = "Breakdown:" +
"Earnings-based Value (" + profit + " x " + multiple + "): " + formatter.format(earningsValue) + "" +
"Net Asset Adjustment (Assets – Debt): " + formatter.format(netAssets) + "" +
"Note: This is an estimate. Actual market value depends on growth rates, market conditions, and deal structure.";
resultContainer.scrollIntoView({ behavior: 'smooth', block: 'nearest' });
}
Business Valuation Calculator
Estimate the market value of your company using the SDE/EBITDA Multiple Method.
Estimated Enterprise Value:
$0
Understanding Business Valuation
Determining the value of a business is both an art and a science. For small to mid-sized enterprises (SMEs), the most common approach is the Earnings Multiple Method. This method looks at your "bottom line" and applies a multiplier based on industry standards, risk, and growth potential.
Key Terms Used in This Calculator
- SDE (Seller's Discretionary Earnings): Often used for owner-operated small businesses. It includes net profit plus the owner's salary, benefits, and non-essential expenses.
- EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. This is the standard for larger companies with semi-absentee management.
- The Multiple: This number represents how many years of profit a buyer is willing to pay upfront. Most small businesses trade between 2.0x and 4.0x.
- Inventory & Assets: In many "Asset Sale" structures, the value of salable inventory and equipment is added to the earnings-based value.
What Influences Your Business Multiple?
Two businesses with the same profit might have very different valuations. A higher multiple is usually awarded to businesses that demonstrate:
- Recurring Revenue: Subscription models or long-term contracts.
- Low Owner Dependency: Can the business run without you there 40 hours a week?
- Clean Books: Transparent financial records that are easy to verify.
- Market Growth: Operating in a trending industry rather than a declining one.
Valuation Example
Imagine a local HVAC company with an annual profit (SDE) of $300,000. If the average industry multiple for that region is 3.0x, the earnings value is $900,000. If they also have $50,000 worth of trucks and equipment (after subtracting any vehicle loans), the total estimated business value would be $950,000.
Disclaimer: This calculator provides a simplified estimate for educational purposes. For a formal valuation, especially for legal or tax purposes, always consult a certified business appraiser or a professional business broker.