Is SDE the same as EBITDA?

No. SDE usually includes owner compensation and add-backs for owner-operated businesses, while EBITDA is more common for larger businesses with management teams.

Which multiple should I use?

Use a multiple from comparable transactions in your industry, size range, margin profile, and deal structure. Generic multiples are only rough placeholders.

Is this a formal appraisal?

No. It is a quick planning estimate and should not replace a qualified valuation professional for financing, tax, legal, or sale decisions.

Business Valuation Calculator

Estimate a small business valuation with revenue, SDE, EBITDA, discounted cash flow, and net asset methods.

Annual revenue ($)

Annual SDE ($)

EBITDA ($)

Net assets ($)

Revenue multiple (x)

SDE multiple (x)

EBITDA multiple (x)

Growth rate (%/yr)

Discount rate (%/yr)

Multi-method business valuation estimate

English business valuation search intent is usually not a single profit shortcut. Users expect a quick estimate from revenue multiples, SDE or EBITDA multiples, discounted cash flow, and an asset baseline.

Annual revenue for a revenue-multiple view.
SDE for owner-operated businesses where add-backs matter.
EBITDA for larger or more manager-run businesses.
Net assets as a tangible baseline after liabilities.
Growth and discount assumptions for a simplified DCF scenario.

Screening estimate only

A formal valuation needs industry comps, normalized financials, working capital, debt, customer concentration, deal terms, marketability and buyer-specific risk.

Common valuation formulas

V a l u e_{r e v e n u e} = A nn u a l R e v e n u e \times R e v e n u e M u l t i pl e

V a l u e_{S D E} = S D E \times S D E M u l t i pl e

V a l u e_{E B I T D A} = E B I T D A \times E B I T D A M u l t i pl e

D C F = t = 1 \sum 5 \frac{C F _{t}}{( 1 + r ) ^{t}} + \frac{T V}{( 1 + r ) ^{5}}

What can move the value

Factor	Why it matters
Recurring revenue	More predictable revenue may support a higher multiple.
Customer concentration	Dependence on a few customers can reduce buyer confidence.
Owner dependence	High owner involvement can make SDE adjustments and transition risk important.
Working capital and debt	Deal structure can change the equity value paid to a seller.

Frequently Asked Questions

Sources and References

Calculations are based on the listed reference sources. Links open in a new tab.

Updated: June 2, 2026

Related Tools

ROI Calculator

Calculate simple return on investment from investment cost and ending value, with net return and ROI percentage.

Open

Profit Margin Calculator

Calculate gross profit, gross margin, markup, and cost ratio from selling price or revenue and cost.

Open

Break-Even Calculator

Calculate break-even point in units and revenue from fixed costs, price per unit, and variable cost per unit.

Open

Compound Interest Calculator

Project savings or investment growth with an initial investment, regular contributions, estimated return, time horizon, and compounding frequency.

Open