Business Valuation Tool

Business Valuation Calculator & DCF Model | Shaynly

Valuation Engine

Enter your financials below to triangulate your business value using 3 methodologies.

Core Financials

Assumptions

10%
12%
Professional Guide

The Ultimate Guide to Business Valuation

Table of Contents

Valuing a business is both an art and a science. Whether you are a founder preparing for an exit, an investor analyzing a deal, or a broker determining list price, knowing the fair market value of an asset is critical. The Shaynly Valuation Engine employs a triangulation strategy, combining market-based data with income-based projections to minimize error.

1. The 3 Methods Used in This Tool

Market Multiples

This asks: "What did similar businesses sell for?"
Revenue Multiples: For high-growth/low-profit firms (e.g., SaaS).
EBITDA Multiples: For mature, profitable SMEs.

DCF Analysis

The Discounted Cash Flow (DCF) method projects future free cash flows and discounts them back to today's value using your WACC.

2. The "Silent Killers" of Valuation

Numbers tell only half the story. Professional buyers will apply a "discount" to your valuation if these qualitative risks exist:

  • Customer Concentration If one client represents >20% of your revenue, your business is risky. Losing them means losing profit. Buyers may dock 10-20% off the final price.
  • Key Person Risk (The Owner Trap) If the business cannot run for 4 weeks without you, you don't own a business; you own a job. This increases WACC and lowers value.
  • Legal & IP Exposure Unsecured contracts, pending lawsuits, or lack of trademark protection can kill a deal during due diligence, regardless of your EBITDA.

3. Industry Multiples Cheat Sheet

Data trends adapted from NYU Stern Valuation Data.

IndustryRev MultEBITDA Mult
SaaS / Software3x - 10x12x - 25x
E-Commerce0.8x - 2.5x3x - 6x
Services (Agency)0.9x - 1.5x3x - 5x
Manufacturing0.6x - 1.2x4x - 7x

4. The Mathematics (DCF Formula)

For those who want to see under the hood, here is the formula used by our tool to calculate the Discounted Cash Flow:

DCF = [ CF1 / (1+r)^1 ] + [ CF2 / (1+r)^2 ] + ... + [ TV / (1+r)^n ]
  • CF: Cash Flow (EBITDA projected)
  • r: Discount Rate (WACC)
  • n: Number of periods
  • TV: Terminal Value (Value of business beyond year n)

Frequently Asked Questions

My business has negative EBITDA. How do I value it?
Use Revenue Multiples (common in startups) or the Liquidation Value method. Investors look at growth rate and path to profitability rather than current earnings.
Does "Enterprise Value" include cash and debt?
No. Enterprise Value (EV) is operations value. Equity Value = EV + Cash - Debt. This is what you actually take home.
What are "Add-Backs"?
Expenses a new owner won't have (e.g., personal car lease, one-time lawsuits, excessive owner salary). Adding these back increases EBITDA and valuation.
Is this tool accurate for pre-revenue startups?
No. Startups lack historical data. They are valued using qualitative methods like the Berkus Method or Risk Factor Summation based on IP and team.
What is Terminal Value?
The estimated value of the business beyond the forecast period (e.g., after year 5), assuming it grows at a stable rate forever into perpetuity.
What is a Liquidity Discount?
Private companies are harder to sell than public stocks. Buyers often apply a 20-30% discount to the valuation to account for this illiquidity.
How often should I value my business?
Annually. Regular valuation helps you track growth, adjust strategy, and be prepared for unsolicited acquisition offers.
What is the "Rule of 40" in valuation?
Common in SaaS: Growth Rate % + Profit Margin % should equal 40% or higher. Companies meeting this rule command premium multiples.

Estimated Value

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