Business Valuation Calculator
Business Valuation Calculator
Estimate your company's worth in USD or INR using professional valuation methods
Business Valuation Calculator
Discounted Cash Flow
Valuation Summary
Understanding Business Valuation
Business valuation determines the economic value of a company using several established methodologies:
1. Discounted Cash Flow (DCF)
Projects future cash flows discounted to present value. Best for established businesses with predictable cash flows.
2. Seller's Discretionary Earnings (SDE)
Calculates owner benefits multiplied by industry factor. Common for small business sales.
3. Market Comparison Approach
Compares to similar sold businesses. Uses revenue multiples plus asset value.
Valuation FAQs
Which valuation method is most accurate?
Professional appraisers use all three methods and weight them based on business type and purpose.
How often should I value my business?
Annually for planning, or when considering major decisions like selling or seeking investment.
Does currency affect valuation?
Valuation fundamentals remain the same, but currency conversion rates may impact final amounts when comparing across markets.
Increasing Business Value
- Diversify customer base - Reduce reliance on any single client
- Document systems - Make your business less dependent on you
- Clean financial records - Professional bookkeeping increases credibility
- Show growth potential - Clear paths to future revenue command higher multiples
- Build strong management - Businesses with good teams are more valuable