Hackernoon logoTop 9 Business Valuation Calculators You Can Try in 2021 by@sarathcp92

Top 9 Business Valuation Calculators You Can Try in 2021

Sarath C P  Hacker Noon profile picture

@sarathcp92Sarath C P

Digital Strategist and Consultant, Growth Hacking Specialist worked for both startups & big brands.

A business valuation calculator that helps buyers and sellers conclude a rough estimate of the business value. Two of the most popular business valuation formulas begin with either annual sales or annual profits multiplied by an industry multiple. Both methods are great starting points to value your business accurately.

Whether you started your business yourself or purchased it from someone else, you must set a goal to grow and increase its value. Also, you must know how to value your business for sale as this plays a critical role in your business finances.

A business value might help you get the best possible price when you sell it. But, it would be best if you also comprehended the value of your business while running it because this gives you more control of your finances. On the basis of the value of your business, you can get loans to buy equipment, inventory, and branch out to new locations. Higher business valuations mean increased cash flow and higher asking and selling prices that will encourage growth. 

Founders use loads of different valuation methods, and the number of those calculations that come up will vary considerably with all the different techniques used. It depends upon the criteria set forth.

To help you get started, here are the top 9 valuation calculators you can try in 2021.

1. CalcXML

A wide range of financial tools has been provided to small businesses for some time now. The valuation calculator provided by the company is a tried and tested model. Therefore, you can actually trust it and in case you are skeptical about it, reviews are always there to help. It is a simple tool designed to give potential buyers a quick snapshot. It takes all of the basics into consideration, including annual earnings, excess compensation, and level of business risk. It only takes a few minutes.

2. Eqvista

Eqvista is one of the leading cap table management software and business valuation providers. They perform high-quality business valuations for clients at a price they can afford. While evaluating a company, you can use different kinds of small business valuation methods. Using Eqvista's business valuation calculator, you can get an idea about the worth of your business.

3. ExitAdviser

Another reputed online support service that empowers business owners to connect with potential buyers is ExitAdviser. ExitAdviser is home to a rapid business valuation calculator intended to give potential buyers quick quotes in line with that service. To get an evaluation, buyers need to enter net profit from the most recent financial year of the company and forecast its sales growth. There are plenty of more advanced input options to help generate more accurate valuations.

4. BizEx

In case you are searching for a free valuation, BizEx is the one. Just like various independent valuation calculators, BizEx hosts a platform based on the 'Multiple of Earnings' method. Their calculator is far more advanced than most of the free models. You will find certain people complaining about various aspects on other sites but not on this one. By incorporating an in-depth breakdown of a discretionary of the company and multiple earnings, you are prepared to generate instant valuation ranges depending upon a range of variables. Ultimately, the option to talk these numbers over with a broker is given to you in case you are so inclined.

5. Digital Exits

In case you have a lot of data and want to find the most accurate value of your business, Digital exits are the one. Digital Exits has examined more than 80 different industries to give business owners a more precise estimate for what they can expect to earn, based on their specific business. The data the company presents will provide you with a better conclusion of where your business sits to assess the market better.

6. EquityNet

One of the globe's leading pioneers in crowdfunding is EquityNet. The platform was launched in 2005; it connects thousands of entrepreneurs with investors of all shapes and sizes. It has already encouraged start-ups across the globe to raise hundreds of millions in equity, debt, and royalty-based capital.

7. Hadley Capital

Hadley Capital's business valuation calculator is somewhat different in that it utilizes a multiple of EBITDA to prepare the Enterprise Value of your business. A small business will typically trade for around three or four times its normalized EBITDA. That being said, the multiple will slide dramatically based upon a variety of characteristics specific to your business. This calculator sensibly emphasizes your annual EBITDA, annual capital expenditures, and how much of your revenue comes from top customers.

8. American River Bank

The discounted cash flow method is used by the American River Bank business valuation calculator to determine the value of the business. According to the bank, this method is more appropriate as the future operating conditions and cash flows are variable or not projected in this method. So, in case you are searching for a business valuation method with such situations, go for the American River Bank valuation calculator. 

9. National Life

National Life is an all-encompassing collection of financial services companies. Its online valuation calculator draws upon that power to produce relatively well-informed market estimates. National Life's calculator finds the company's worth by studying the present value of its expected future earnings. It puts particular consideration on a lack of marketability and excess compensation of the company.

There are many brilliant valuation calculators online that you can use to generate a snapshot of how much a business may be worth. One thing you should keep in mind is these free business valuation calculators aren't always accurate. It's up to you to do your homework to make sure that you have put in or accepted the best possible offer for an existing company.

Now that you know the top 9 Business Valuation Calculators You Can Try in 2021, it would be best to choose one per your needs. Before opting for any one of the business valuation calculators, it is important that you perform a little R&D yourself. This will assist you to have more knowledge about your business value and choose an option that best suits you. Now Do not wait much and Go ahead, choose the perfect business valuation calculator for your business Now!

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by Sarath C P @sarathcp92. Digital Strategist and Consultant, Growth Hacking Specialist worked for both startups & big brands. Read my stories


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