Free Business Valuation Calculator

A business valuation calculator assists buyers and lenders in determining an approximate value of a business. Two of the more general business valuation formulas start with annual revenues or gross sales, multiplied by a relevant industry multiple. These typically take into account the number of units in the business, current market prices for similar units in the business, and the impact of long-term debt and equity financing on the current value of the business.

In order to determine the free business valuation of small businesses, potential buyers may want to use more than one business valuation calculator. For instance, some business valuation calculators may require an owner to input data such as average revenues, number of sales during the past three years, and the sales tax rate. However, these numbers could change for several reasons. It may be the case that future competition will make revenue numbers far greater than the existing figures. The owner might decide to purchase a building or facilities in a particular area now that there are fewer competitors. Other owners who are looking to buy properties are more likely to use free business valuation calculators that allow them to enter local sales and tax data.