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Business Valuation Calculator UK

Wondering how much your business is worth? Our free calculator uses the SDE (Seller's Discretionary Earnings) multiple method — the same approach used by UK business brokers and accountants. Get an instant indicative valuation in under two minutes.

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The business valuation calculator uses an Adjusted Earnings Multiple approach. Your net profit is adjusted for owner salary add-backs (producing the SDE figure), then multiplied by a sector-specific multiple — typically 2–5x for UK SMEs — with adjustments for business age, growth trajectory and owner dependency.

This methodology is used by UK accountants, business brokers and corporate finance advisers when valuing businesses for sale. While every transaction is unique, this tool gives you a reliable starting point before engaging professional advisers.

Business Valuation Calculator UK

How much is your business worth? Get an indicative valuation based on industry-standard earnings multiples used by accountants and business brokers.

📐 Method: We use an Adjusted Earnings Multiple approach. Your net profit is adjusted for owner add-backs (SDE method), then multiplied by a sector-specific multiple (typically 2–5x) with adjustments for age, growth, and owner dependency.

If owner-operated, add your salary back (SDE method)

Non-recurring or personal costs

Estimated Business Value (SDE Method)

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⚠️ Disclaimer: This is an indicative valuation only. Actual value depends on assets, liabilities, contracts, market conditions, and buyer appetite. Always seek professional valuation advice before making decisions.

Frequently Asked Questions

How accurate is a business valuation calculator? ▼
This calculator uses the SDE multiple method — the same methodology used by UK business brokers. It gives a reliable indicative range, typically within 15–20% of a formal valuation. For a sale or acquisition, you should always commission a professional valuation from a chartered accountant or corporate finance adviser.
What is SDE (Seller's Discretionary Earnings)? ▼
SDE is your net profit plus any add-backs — typically your owner salary, personal expenses run through the business, and one-off costs. It represents the true economic benefit a single owner-operator derives from the business. It's the standard metric for valuing SMEs.
What earnings multiple should I use? ▼
UK SME multiples typically range from 1.5x to 5x SDE, depending on sector, size, and growth. Service businesses typically achieve 2–3x, technology companies 4–8x, and manufacturing 2.5–4x. Businesses with recurring revenue, strong growth and low owner dependency command the highest multiples.
How can I increase my business value? ▼
The biggest value levers are: reducing owner dependency (systemise and delegate), building recurring revenue, growing consistently, documenting processes, and diversifying your customer base. Our operational efficiency audit often identifies improvements that increase both profitability and business value.

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