Business Valuation Template
Estimate business value using multiple valuation methods.
What's Included:
- Three valuation methods: earnings multiple, discounted cash flow, and asset-based
- Industry multiple lookup with common EBITDA and revenue multiples
- Discounted cash flow model with configurable discount rate and growth assumptions
- Valuation range summary showing the low, mid, and high estimates
Available Formats:
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Business valuation is more art than science—different methods produce different numbers. This template calculates value using three widely accepted approaches so you can see a range rather than relying on a single estimate. The range gives you both a floor and a ceiling for negotiations.
The discounted cash flow (DCF) model is the most theoretically sound method because it values a business based on its future earning potential. However, small changes in the discount rate or growth assumptions dramatically change the result. This template lets you adjust both inputs and see the impact instantly, which builds your intuition for what drives your business's value.
How to Use This Template
Enter Financial Data
Input your annual revenue, EBITDA, net assets, and 5-year cash flow projections. The template uses these inputs across all three valuation methods.
Select Industry Multiples
Choose your industry from the lookup table to apply the appropriate EBITDA and revenue multiples. Adjust for company size and growth rate.
Review the Valuation Range
Compare the three methods side by side. The summary shows a valuation range that accounts for different methodologies—use this range as your negotiating framework.
Frequently Asked Questions
What is the most common method for valuing a small business?
Earnings multiples (typically EBITDA multiples) are the most common method for small business acquisitions. The buyer multiplies your adjusted EBITDA by an industry-typical multiple (usually 3-7x). This template includes industry multiple lookups and calculates the valuation automatically.
What discount rate should I use for DCF valuation?
For small businesses, a discount rate of 15-30% is common, reflecting the higher risk compared to publicly traded companies. Use the lower end for established businesses with stable cash flows and the higher end for younger, riskier companies. This template lets you set and adjust the rate.
Related Financial Resources
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