How to value a business in the UK
Eight methods, when each is useful, and why a blended view is often stronger.
Read the guide →Get an immediate, transparent estimate using maintainable earnings, net assets and a revenue cross-check. You choose the valuation multiple; WorthBeam shows exactly what changes the result.
Start with the figures you know. The headline result uses your maintainable earnings and chosen multiple. Net assets and the British Business Bank’s published 0.5×–2.0× times-revenue range are displayed separately as cross-checks, rather than blended into an unexplained score.
The same workflow works whether you arrived searching for a business valuation calculator, company value calculator, value-my-business calculator or small business valuation calculator. The important part is the quality of the figures and assumptions, not the label on the tool.
Enter turnover and earnings that represent normal trading rather than an exceptional month or one-off event. Use current realistic asset and liability values.
Start with sector comparables, transaction evidence or professional guidance if you have it. The multiple remains visible and editable at all times.
Compare earnings value with net assets and the revenue range. Large disagreements are a reason to investigate the method, not average the numbers blindly.
Business valuation is not one formula. UK guidance describes several approaches, and many real valuations use more than one. WorthBeam shows methods side by side so you can see where they agree or diverge.
Maintainable earnings × the multiple you choose. The result is accompanied by a ±1× sensitivity range rather than a false claim that one multiple is universally correct.
Assets minus liabilities. This can be informative for asset-rich companies, but may understate goodwill, brand, customer relationships and future earning power.
Turnover × 0.5–2.0 is shown only as a cross-check, reflecting the range described by the British Business Bank. Revenue does not account for costs or profitability.
The British Business Bank lists eight possible methods: entry valuation, discounted cash flow, asset valuation, times revenue, price-to-earnings, comparable analysis, industry best practice and precedent transactions. Which is most useful depends on the business and the purpose of the valuation.
Compare all valuation methodsCalculate EBITDA from net profit, interest, tax, depreciation and amortisation, then test enterprise value and equity value across different multiples.
Open the EBITDA valuation calculator →Repeatable earnings usually tell a buyer more than one exceptional year. Normalise one-off costs and income before relying on a profit multiple.
A business dependent on one customer, one supplier or one owner can be harder to transfer. Due diligence often focuses on how resilient earnings are.
Growth prospects matter, but a credible valuation still needs evidence: recent transactions, comparable businesses, sector data or professional judgement.
A valuation can support sale planning, investment discussions, succession, shareholder conversations, buying a business or simply understanding which drivers create value. The level of evidence should match the decision: a free calculator may be enough for early planning, while a transaction or formal purpose usually needs professional work.
Before applying a multiple, normalise earnings and separate recurring performance from one-off items. Our selling guide includes an adjusted-EBITDA tool and links to current GOV.UK guidance on selling a limited company.
Estimate a sale-price scenarioEight methods, when each is useful, and why a blended view is often stronger.
Read the guide →Test profit multiples without pretending there is one universal answer.
Explore profit multiples →Normalise EBITDA, understand saleability and separate valuation from final deal price.
Plan a sale →There is no universal profit multiple. The appropriate multiple depends on the type of earnings used, sector, size, growth, risk, customer concentration, owner dependence and current market evidence. WorthBeam therefore makes the multiple an explicit assumption and shows sensitivity around it.
Profit or cash-flow measures are generally more informative for an established profitable business because they reflect costs. A turnover multiple can be a useful cross-check in some sectors or early-stage situations, but revenue alone can hide poor margins.
A calculator can produce a useful planning estimate when the inputs and assumptions are transparent. It cannot replicate buyer due diligence, comparable transaction evidence, a formal valuation or negotiation.
Enterprise value represents the value of the operating business before net debt. Equity value is the amount attributable to shareholders after adjusting for debt and cash. Our EBITDA calculator shows both.
For many established businesses, adjusted EBITDA is useful because it focuses on operating performance before financing, tax and non-cash depreciation/amortisation. Very small owner-managed businesses may also look at maintainable profit or owner earnings. Consistency matters more than the label.
No form submission is required. Calculator values are processed in your browser. WorthBeam uses analytics services for site measurement, but the calculator code does not send your entered financial values as analytics event parameters.
Professional fees vary with the purpose, company size, complexity, records, valuation standard and amount of supporting work required. WorthBeam does not publish a generic fee as if it applied to every engagement; ask for a written scope and quote for your specific purpose.
A WorthBeam calculator result is immediate. A professional valuation can take much longer because the valuer may need accounts, forecasts, asset details, comparable transactions, management information and clarification of the valuation purpose.
WorthBeam’s educational methodology is built around public UK guidance, principally the British Business Bank guide to valuing a business. Sale and tax-related guides link directly to current GOV.UK guidance. See Methodology & sources for the assumptions and limitations used in the tools.