VALUATION & GROWTH

Business Valuation Calculator: Determining Your Company's Worth

A simple guide for UK SMEs to instantly estimate business value using profit multiples and the Net Assets method.

⊛ 1 min read | By Alan Davidson | November 2025

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Common Questions About Business Valuation

How is the Earnings Multiple calculated?
We typically calculate this by taking your Adjusted Net Profit (often EBITDA) and multiplying it by a figure standard for your industry. This "multiple" reflects the risk and growth potential of your sector. Safer, high-growth businesses command higher multiples.
What factors increase my business valuation?
Valuations are driven by certainty and growth. You can increase your multiple by building recurring revenue streams, ensuring the business is not dependent on the owner (you), diversifying your customer base, and maintaining strong, consistent profit margins.
Is this calculator accurate enough for a sale?
This tool provides a strategic estimate to help you understand your position. However, a formal business sale or exit requires a comprehensive professional valuation that considers intangible assets, intellectual property, and current market conditions.

Ready to Determine Your Company's Worth?

Getting a simple valuation estimate is the essential first step in preparing for a sale, securing finance, or structuring an exit plan. Understand your negotiating position today.

Click below to see where you are at in your business cycle, and what key things to now focus on.

Simple business valuation for UK SMEs and exit planning.

Alan Davidson. Strategic Accountancy Partner and author at OutRise

ABOUT THE AUTHOR

Alan Davidson FCA

Chartered Accountant | Author

Alan is the author of “Achieve your Business Vision” and a Fellow of the Institute of Chartered Accountants in England and Wales (FCA). With over 30 years of experience, he has advised hundreds of SME owners on strategic financial planning and business growth.

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