Business valuation software
- Business value with inventory
- $486,000
- Value of the earnings
- $450,000
- Price per dollar of earnings, all in
- 2.7
Every figure on this page is computed from the inputs you enter, by the method stated below it, including the multiple, which is yours. MultiplesBook publishes no multiples, no comps and no survey: the defaults are a worked example to replace with your own.
Business valuation software is bought by two people: the owner who wants to know what the business is worth before a broker tells them, and the buyer who wants to check the asking price against the earnings. Both need the same three things: the earnings the business actually throws off, a multiple whose basis they can see, and a record of how the number moved from one year to the next. What they do not need, and what most software sells, is a published multiple nobody will stand behind. This guide is about what that software has to do, and the free small business valuation on this site does the arithmetic with no account.
Try the free small business valuation Free to use. No account, no card, no trial clock.
Earnings first, and the owner's add-backs shown
A small business is valued on seller's discretionary earnings: net profit plus the owner's salary, benefits and the one-off costs added back, because the buyer will run it without those. Software that starts from revenue or from net profit alone prices the business wrong in opposite directions; the tools on this site start from the earnings figure the owner works out from the books.
The multiple is yours, and the software says so
The multiple is the whole argument, and it comes from comparable sales, a broker who has closed deals in the trade, or the buyer's offer. A multiple printed on a website is a guess about a trade and a town nobody has seen. The tools ask for the multiple and show the value at it, so the number on the page is only as good as the multiple you can defend.
The inventory on its own line, the record kept
Inventory sold with the business is added at cost on its own line, because it is not earnings and a buyer does not pay a multiple on it. Then the valuation files against the business and the date, because the useful question next year is not what the business is worth but what changed. The paid plan keeps that book.
Business valuation software: common questions
What should business valuation software include?
A small business valuation from seller's discretionary earnings at a multiple you set, with inventory on its own line; a startup valuation from the round and the equity given; a report with a low, a high and a midpoint; and businesses and valuations so every number files against the business and the date. A published multiple and an appraisal opinion are things it should not include.
Is there free business valuation software?
The tools on this site are free and need no account: the small business valuation, the startup valuation and the report each value the business on the page from your own figures and print as they stand. MultiplesBook Pro adds your name on the report, a PDF with no watermark, and saving every valuation against the business.
Is the number a valuation I can give a lender or a court?
No. It is your own arithmetic on your own figures at a multiple you chose, which is what the conversation with a buyer needs and what the record of your business needs. A lender, a court or a tax authority wants an appraisal signed by a qualified valuer, and the tools say so on every page.
Will it do what you need for Business valuation software?
Tell us what valuing your business needs and we will tell you straight whether MultiplesBook Pro does it today, whether it is coming, or whether you are better off with a valuer. A person reads these and replies.