What is the value of my business?

Similar to bond or real estate valuations, the value of a business can be expressed as the present value of expected future earnings. Use this calculator to determine the value of your business today based on discounted future cash flows with consideration to "excess compensation" paid to owners, level of risk, and possible adjustments for small size or lack of marketability.
Input
Annual earnings before interest, taxes, depreciation, and amortization ($) 
"Excess compensation" paid to owners (if any) ($) 
Anticipated rate of earnings/compensation growth (0 if level) (%) 
Number of years earnings are expected to continue
(maximum 10 which assumes perpetuity)
 
Level of business/industry/financial risk
(Typically restaurants and retail are lower risk than manufacturing and high tech)
 
Discount for lack of marketability (%) 
The information provided here is to assist you in planning for your future. Any analysis is a result of the information you have provided. Material discussed is meant for general illustration and/or informational purposes only and it is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary therefore, the information should be relied upon when coordinated with individual professional advice.

Any rate of return entered into the interactive calculator to project future values should be a reasonable average return for the period. Rates of return will vary over time, and generally the higher the rate of return the higher the degree of risk.

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