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Company Valuation Calculator

Estimate your company's value using the EBIT multiplier method. Industry-specific valuation.

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Net revenue of the last fiscal year

Earnings before interest and taxes (EBIT)

Example values to test:

Usage Note

This calculation provides an initial orientation. A professional business valuation by auditors or M&A advisors considers many additional factors such as market position, customer structure, contracts and synergies.

When Do You Need a Business Valuation?

Company Sale

Realistic price expectation for negotiations with potential buyers.

Shareholder Entry/Exit

Fair share value when admitting new partners or when a shareholder exits.

Financing & Investors

Valuation as basis for bank discussions, venture capital or private equity.

Inheritance & Gift

Valuation for tax purposes in business succession.

Divorce & Asset Division

Determination of company value for matrimonial property settlement.

Strategic Planning

Self-assessment and benchmark against competitors.

EBIT Multipliers by Industry

Multipliers vary by industry, company size and market conditions. These reference values are based on current transaction data:

Industry Multiple (Avg) Range Typical Buyers
Retail & Trade 3.5x 2.5-4.5x Competitors, Private Equity
Crafts & Construction 4.0x 3.0-5.0x Successors, Corporations
Gastronomy & Hospitality 3.5x 2.5-4.5x Chains, Investors
Services 5.0x 4.0-6.0x Industry Leaders, PE
Manufacturing 5.0x 4.0-6.0x Corporations, Mid-market
IT & Software 6.5x 5.0-8.0x Tech Corporations, PE
SaaS & Tech 8.0x 6.0-12.0x Strategic Buyers, VC
E-Commerce 5.5x 4.0-7.0x Aggregators, Corporations
Healthcare & Pharma 8.0x 6.0-12.0x Pharma Corporations, PE

Source: Aggregated transaction data from M&A databases (2023-2024). Individual valuations may differ.

Valuation Methods Overview

1

EBIT Multiplier Method

The fastest way to business valuation: EBIT × industry-specific multiplier. Ideal for initial orientation and comparisons. Does not consider capital structure.

Company Value = EBIT × Multiple (e.g. €100,000 × 5 = €500,000)
2

Earnings Value Method (IDW S1)

German standard method for valuations: Projected earnings are discounted with capitalization rate (8-15%). Considers future expectations and risks.

Company Value = Σ (Earnings_t / (1+i)^t) + Residual Value
3

DCF Method (Discounted Cash Flow)

International standard method: Future free cash flows are discounted with weighted average cost of capital (WACC). Particularly accurate with detailed financial projections.

Company Value = Σ (FCF_t / (1+WACC)^t) + Terminal Value
4

Asset Value Method

Valuation based on assets: Sum of all assets (machinery, real estate, inventory) minus liabilities. Often used as a floor value ('liquidation value').

Company Value = Assets (Fair Value) - Liabilities

Frequently Asked Questions About Business Valuation

How do you calculate company value?
Company value is typically calculated using the EBIT multiplier method: annual profit (EBIT) multiplied by an industry-specific factor (3-10x). Other methods include the earnings value method (discounted future earnings), the asset value method (assets minus liabilities) and the DCF method (Discounted Cash Flow).
What is the EBIT multiplier?
The EBIT multiplier is an industry-specific factor that multiplies the annual profit before interest and taxes (EBIT). It typically ranges between 3x (riskier industries) and 10x (high-growth tech companies). The factor reflects growth potential, stability and industry risks.
How much is a GmbH worth?
The value of a GmbH depends primarily on profit, not share capital (€25,000). A profitable GmbH with €100,000 EBIT is worth €300,000 to €800,000 depending on the industry. A GmbH without profits is often only worth the asset value, but may still attract interest due to loss carryforwards.
What is the difference between company value and purchase price?
The calculated company value is a reference value; the actual purchase price may differ. It is influenced by: negotiation skills, strategic value for the buyer (synergies), sales pressure, due diligence results and current market conditions. Typically the purchase price is ±30% of the calculated value.
What increases company value?
Value-enhancing factors: recurring revenues (subscriptions, maintenance contracts), diversified customer base (no concentration risk), scalable business models, strong brand/IP, qualified management (not owner-dependent), long customer relationships, high margins and growth above industry average.
What decreases company value?
Value-reducing factors: high owner dependency (owner = company), concentration on few large customers, outdated technology, high employee turnover, pending litigation, legacy issues (environmental, pensions), declining revenues and low margins.
What does a professional business valuation cost?
Professional valuations cost depending on complexity: Indicative valuation (€5,000-15,000), IDW S1 report (€15,000-50,000), Due Diligence + valuation (€50,000-150,000+). For initial orientation, free tools like this calculator are often sufficient.
How long does a company sale take?
A structured sale process typically takes 6-12 months: Preparation & valuation (2-3 months), buyer search & initial discussions (2-3 months), due diligence (1-2 months), negotiation & closing (1-2 months). Quick sales to known parties can be completed in 3-4 months.

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