Quick business worth estimator
For a fast scenario, enter maintainable annual profit and the multiple you want to test. Add assets and liabilities to see the net-asset cross-check.
Sensitivity ±1×: — · Net assets: —
For a fuller result including revenue cross-checks and saleability prompts, use the Business Valuation Calculator UK.
What is a business valuation?
A business valuation is an estimate of what a company or business interest is worth in monetary terms. The answer changes depending on what is being valued — shares, assets or the operating business — and why the valuation is needed.
How much is my business worth in the UK?
There is no single formula that works for every UK business. Public guidance from the British Business Bank describes eight approaches and notes that valuations often combine more than one method. For an established profitable private company, earnings or cash-flow approaches may be useful; asset-heavy businesses may need an asset valuation; early-stage companies may use revenue or other market evidence.
What affects how much a business is worth?
- Maintainable earnings and the quality of those earnings.
- Growth, margins and how predictable future cash flows are.
- Customer and supplier concentration.
- Dependence on the owner or key staff.
- Assets, liabilities, working capital and capital expenditure needs.
- Intangible value such as brand, IP, contracts and customer relationships.
- Comparable market transactions and current buyer appetite.
Alternative ways to value a UK business
Useful cross-checks include discounted cash flow, net assets, times revenue, comparable-company analysis and precedent transactions. Our UK valuation methods guide explains where each can help and where each can mislead.
If you are thinking about selling
Normalise the accounts before you anchor on a multiple. A buyer will usually look for recurring earnings and may challenge one-off add-backs, unusually high or low owner remuneration, exceptional income and costs that will reappear after completion. Use our selling-price guide and EBITDA normaliser.
