Our calculation principle
WorthBeam does not claim that a single formula can determine the market value of every business. The core calculator therefore displays separate valuation views instead of combining them into an opaque score.
Earnings-multiple scenario
The headline calculator value equals maintainable earnings × the earnings multiple entered by the user. The sensitivity band shows the same earnings at one multiple lower and one multiple higher. WorthBeam does not infer an industry multiple from the business-quality questions.
Asset cross-check
Net asset value is calculated as assets minus liabilities. British Business Bank guidance describes net book value on this basis and notes that an asset valuation can miss goodwill and future growth.
Revenue cross-check
The calculator displays turnover × 0.5 to turnover × 2.0 because the British Business Bank describes a typical 0.5–2 times revenue multiplier in its overview of the times-revenue method. It also warns that this approach does not account for expenses or capacity to generate positive net income. WorthBeam therefore treats this as a cross-check, not the headline valuation.
EBITDA calculator
EBITDA = net profit + interest + tax + depreciation + amortisation. Enterprise value = EBITDA × the user-selected multiple. The simplified equity bridge shown is enterprise value − debt + cash. Real transactions may require working-capital, debt-like-item and surplus-asset adjustments.
Quality signals
Growth, recurring revenue, customer concentration and owner dependence are presented as qualitative due-diligence prompts. They do not change the numerical result because applying an arbitrary percentage would create false precision.
Primary sources
- British Business Bank — How to value a business
- GOV.UK — Selling your business: limited company
- GOV.UK — Business Asset Disposal Relief
- GOV.UK — Corporation Tax when selling or closing a company
Review process
Pages show a review date where the topic depends on current UK guidance. We revisit source links and calculator assumptions when authoritative guidance changes. Corrections can be sent through the contact page.