Free Business Valuation Calculator — DCF Method

Why use a business valuation calculator?

Most SME owners don't really know what their business is worth. Many underestimate their intangible assets (brand, customer base, team), others overestimate them without reliable benchmarks. This uncertainty becomes a major issue at three critical moments:

• Preparing a sale or merger — Planning to sell in 2-3 years? Knowing your true value helps you negotiate better. Buyers do their calculations; you should do yours to avoid surprises.
• Seeking financing — Banks and investors ask for valuation. A well-reasoned figure boosts credibility and eases credit access.
• Estate planning and succession — Understanding your business value means knowing your real wealth and planning for transmission to heirs or a successor.
• Negotiating with investors — Seeking capital? You'll defend your position better with a valuation based on recognized methodology.

A valuation calculator gives you an instant, free answer, based on your real financial figures and assumptions calibrated to your industry. It's your first step toward clear understanding of your value.

How does our calculator work?

Our tool follows a three-step process that mirrors investment banking methodology:

1. You enter your information — Your industry (7 categories), annual revenue, EBITDA, and fiscal year-end. No detailed accounting needed: top-line figures suffice.
2. The calculator computes your value — It applies the DCF (Discounted Cash Flow) methodusing a WACC (Weighted Average Cost of Capital) calibrated to your sector. We use Damodaran betas and assumptions, the same ones employed by major financial institutions. The calculator projects your cash flows over 5 years, applies Gordon-Shapiro for terminal value, and discounts everything.
3. You get a range in three scenarios — Pessimistic (reduced growth and margins), Realistic (market assumptions), Optimistic (accelerated growth). Each generates enterprise value and equity value.

Key points: Everything calculates in your browser; no data sent to our servers. Basic valuation is free. No account creation, no email required. If you want a professional PDF report (complete with sensitivity analysis, charts, detailed assumptions), it's available as an optional paid add-on.

What makes us different

Many online valuation tools use oversimplified rules of thumb: "Your business is worth X times revenue." It's quick but unreliable.

Our calculator uses the DCF method, the most robust and widely used by professionals. Here's what sets us apart:

• Real DCF (Discounted Cash Flow) — Not a simplistic multiple. We project your future cash flows accounting for growth, margins, and sector-specific risk.
• Gordon-Shapiro terminal value — Most free tools ignore the "post-5-year" value. We calculate it correctly, assuming stable long-term growth (2-3%), which is realistic.
• Sector-calibrated WACC (Damodaran) — The discount rate reflects your industry risk. A bakery doesn't have the same risk as a tech startup. Our WACCs are based on Damodaran data, used by corporate finance analysts.
• Three scenarios (pessimistic / realistic / optimistic) — You don't see one number, but a range. That's more honest and useful for decision-making.
• Sensitivity analysis — Which factors most influence your value? The PDF report details how each assumption affects results.
• Privacy guaranteed — Everything stays in your browser. No third party accesses your figures.

To learn more about DCF and how it applies to SMEs, see our complete guide: The DCF Method for Valuing an SME.

Who is this for?

• Business owners planning a sale — Thinking of selling in 2-3 years? Valuation preps you mentally, helps identify value drivers, and gives a ballpark before engaging an expert.
• Prospective buyers or successors — Evaluating an acquisition or takeover? The calculator gives quick benchmarking. Compare against the seller's ask and ask smarter questions.
• Accountants and auditors — Supporting SME clients needing valuation (impairment tests, succession, asset contributions, etc.)? Our tool gives a quick, transparent baseline to discuss with your client.
• Entrepreneurs seeking clarity — Grown over 5-10 years and wonder "what is my business really worth?" Understanding this matters for your wealth, investment decisions, and peace of mind.

Try it free

Basic business valuation via DCF is completely free. You only need a few key figures (industry, revenue, EBITDA). In three minutes, you'll have a usable valuation range.

Frequently asked questions

Is it really free?

Yes, basic valuation with three scenarios (pessimistic, realistic, optimistic) and key factors analysis is completely free and unconditional. You get results instantly after entering your data.

If you want a professional PDF report (12-15 pages with assumptions detail, sensitivities, charts, recommendations), it's available as a paid option. But the valuation itself costs nothing.

Is my data protected?

Completely. Our calculator runs entirely in your browser. Your data (revenue, EBITDA, etc.) never goes to our servers. No logging, no tracking, no third-party sales. You can close the tab and return later; calculations stay local to your machine.

If you choose to order a PDF report (optional), payment is via a secure processor (Stripe or equivalent) and data is only processed to generate and send your document.

What methodology is used?

We use the DCF (Discounted Cash Flow) method, the most reliable and universally recognized in corporate finance. It's taught in business schools, used by investment bankers, and employed by PE funds.

DCF projects your future cash flows (5 years), adds terminal value (Gordon-Shapiro), and discounts everything at your WACC (risk-adjusted rate). It's more robust than oversimplified multiples (Revenue × X) or asset-based approaches.

Learn more: Understanding DCF for an SME.

Can I use the result officially?

The result is an estimate, useful for your personal understanding, commercial negotiations, or strategic planning. It's a great starting point.

However, for official or legal use (real estate transaction, business contribution to an SCI, succession, asset impairment tests, significant third-party contracts), we recommend validation by a professional expert: accountant, auditor, or valuation specialist.

An expert can refine assumptions, integrate legal/tax specifics, and provide a signed, defensible report in case of dispute.

Related resources

To deepen your understanding of valuation:

• How to value an SME using DCF
• Cost of capital by industry (WACC)
• How to value a business: methods and best practices
• Free business valuation online: our tools and methods