Business Valuation Estimator
Estimates the value of a business using three standard methods: discounted cash flow (DCF), revenue/earnings multiples, and asset-based valuation. Compares all three results side by side so you can triangulate a defensible range.
Business - Business Valuation Estimator.xlsx
Excel (.xlsx) — No macros — Works in Excel, Google Sheets, LibreOffice
What This Spreadsheet Solves
- Uncertainty about what a business is actually worth
- Lack of a structured framework for valuation discussions with investors or buyers
- Difficulty comparing DCF, multiples, and asset-based approaches in one place
- No clear way to test how changing assumptions shifts the valuation range
- Inconsistent valuation methodologies across internal stakeholders
Who This Is For
- Founders preparing for fundraising or exit
- CFOs presenting valuation analyses to the board
- M&A analysts evaluating acquisition targets
- Business brokers pricing companies for sale
Inputs
- $Annual Revenue
- $Annual Net Income
- $Total Assets
- $Total Liabilities
- $Projected Cash Flow (5 years)
- %Discount Rate
Outputs
- DCF Valuation
- Revenue Multiple Valuation
- Earnings Multiple Valuation
- Asset-Based Valuation
- Blended Valuation Estimate
- Valuation Range (Low / Mid / High)
How Calculations Work
The DCF method discounts projected future cash flows back to present value using the provided discount rate. The multiples method applies industry-standard revenue and earnings multipliers to current financials. The asset-based method subtracts total liabilities from total assets. The blended estimate weights all three methods to produce a single mid-point and range.
Example Use Case
Scenario: A SaaS company with $2M annual revenue, $400K net income, $1.2M in assets, $300K in liabilities, and projected cash flows of $500K-$800K over five years at a 12% discount rate.
Result: DCF valuation of $2.1M, revenue multiple valuation of $6M (3x), earnings multiple valuation of $4.8M (12x), asset-based valuation of $900K. Blended estimate: $3.5M with a range of $2.1M-$6M.
What You Get — 5 Sheets
Technical Details
Frequently Asked Questions
Which valuation method should I trust most?
It depends on context. DCF is strongest when you have reliable cash flow projections. Multiples are useful when comparable companies exist. Asset-based works best for asset-heavy businesses. The blended estimate reduces bias from any single method.
Where do the industry multiples come from?
The CONFIG sheet includes default multiples based on common ranges. You should replace these with multiples from your specific industry, sourced from databases like PitchBook, BizBuySell, or your financial advisor.
Can I use this for a pre-revenue startup?
DCF still works if you have projected cash flows. Revenue multiples will not apply. You may need to rely more on asset-based valuation or adjust the blended weights in CONFIG.
How many years of cash flow projections should I use?
Five years is standard for most DCF models. The template supports up to five years. Beyond that, forecast accuracy drops significantly.
Does this account for terminal value?
The DCF calculation in the LOGIC sheet includes a terminal value assumption based on a perpetuity growth model. You can adjust the terminal growth rate in CONFIG.
Download Business Valuation Estimator
Ready to use immediately. Enter your data in the INPUT sheet, see results in OUTPUT.