Business Valuation Estimator
An indicative value range for your SME, built from industry earnings multiples
Results are estimates for guidance only. This tool does not provide financial advice.
Business Details
Ongoing profit before income tax and before paying the owner. If your accounts already deduct owner wages, add them back. Exclude one-off gains.
What a full-time manager would cost to replace the owner. Enter 0 if the owner keeps working after a sale.
Each factor moves the multiple by up to 0.5x. Only answer what you know - the middle option leaves the band unchanged.
This is a rule-of-thumb estimate, not a valuation. Industry multiple ranges are starting points. They do not replace a proper financial modelling engagement or a formal valuation, which normalises 3-5 years of accounts, weighs assets and liabilities, and applies professional judgement. Don't price a sale, raise finance, or settle a dispute on this number alone. See our guide to valuation multiples by industry for what moves a multiple up or down.
Enter your profit and industry above
to see your estimated value range
How the estimate works
- 1.Maintainable earnings. Your annual profit before owner wages and tax, minus the cost of replacing the owner. This approximates the earnings a buyer actually receives.
- 2.Industry multiple. Each industry carries a typical earnings multiple band for established SMEs, drawn from observed Australian transactions. See the multiples by industry guide for the full reasoning.
- 3.Quality factors. Profit trend, recurring revenue, customer spread and owner dependency each shift the band by up to 0.5x. A growing, diversified business with recurring revenue and a team that runs without the owner lands near the top; a declining, owner-reliant business sits near the bottom.
- 4.Size reality check. Multiples rise with size. Below roughly $250,000 of earnings, small-business sales typically complete at 1.5x-2.5x of discretionary earnings, so treat the low end as the realistic figure.
Want the full picture before you act? The business valuation methods guide compares the multiples approach with discounted cash flow and asset-based methods, and what a professional engagement adds.