This corporate finance calculator estimates enterprise business valuation ranges based on annual net earnings and industry transaction multiples. Entrepreneurs evaluating exit opportunities, small business owners preparing for acquisitions, and investors assessing private firms can determine valuation baselines across multiple industry sectors.

### Valuation Methodology and Multiples The estimation model applies standardized industry transaction multiples to net operating profit / Seller's Discretionary Earnings (SDE):

- **Industry Multiples:** - *SaaS / Software:* 5.0× multiple reflecting recurring revenue models and software operating margins. - *Professional Services:* 2.5× multiple reflecting consulting, agency, and client service practices. - *Retail / E-commerce:* 2.0× multiple reflecting inventory-intensive physical and online goods businesses. - **Valuation Band Equations:** - **Mid Valuation (Baseline):** $$\text{Mid} = \text{Annual Net Profit} \times \text{Multiple}$$ - **Low Valuation (Conservative, -20%):** $$\text{Low} = \text{Round}(\text{Mid} \times 0.8)$$ - **High Valuation (Optimistic, +30%):** $$\text{High} = \text{Round}(\text{Mid} \times 1.3)$$

### Worked Numeric Example Suppose an entrepreneur evaluates a professional services firm: - **Annual Revenue:** $500,000 - **Annual Net Profit:** $100,000 - **Industry Sector:** Professional Services (2.5× multiple)

**Step-by-Step Evaluation:** 1. **Baseline Valuation:** \$100,000 \times 2.5 = \mathbf{\$250,000}. 2. **Conservative Valuation (-20%):** \$250,000 \times 0.8 = \mathbf{\$200,000}. 3. **Optimistic Valuation (+30%):** \$250,000 \times 1.3 = \mathbf{\$325,000}. 4. **Valuation Range:** The firm evaluates to between **$200,000** and **$325,000**.

### Advisory Scope and Privacy This calculator provides preliminary multiples-based estimates and does not replace certified appraisals, asset auditing, or discounted cash flow (DCF) modeling. All financial inputs process strictly in your browser runtime and are never uploaded or stored.