Company Valuation Calculator
1 Financial data
2 Company profile
Calculation basis
Want to prepare your company for sale or find a suitable business to buy?
See listings on Äriportaal →How to value a company?
Valuing a company is the first and most important step before selling a business or raising investment. Without a realistic estimate you risk either selling below market value or asking such a high price that you scare off potential buyers.
Estonia has no single mandatory methodology for valuing companies. In practice several methods are used in parallel, and combining them gives the most reliable result. Our calculator uses the three most common approaches, also applied by professional business brokers.
EBITDA multiple method
The EBITDA multiple is the most widely used method for valuing small and medium-sized companies, both in Estonia and across Europe. EBITDA – earnings before interest, taxes, depreciation and amortisation – shows how much money a company actually earns from its core operations.
Company value is calculated as: annual EBITDA × industry multiple. On the Estonian market, small-company multiples mostly fall between 3–6×, but for IT companies they can reach 8× and higher. The multiple is affected by the company’s growth rate, customer base stability and the industry’s profit margins.
In practice: if your food-service company earns €40,000 EBITDA per year and the industry multiple is 3×, the estimated value is €120,000. But for a growing IT company with the same EBITDA, at a 7× multiple the value could reach €280,000.
Revenue multiple method
The revenue multiple method suits fast-growing companies especially well, where profit may not yet reflect the true potential. In that case the company’s annual revenue is multiplied by an industry-specific multiple.
On the Estonian market revenue multiples range from 0.3–3× depending on the sector. The highest multiples are for IT and SaaS companies, the lowest in food service and traditional retail. This method is also particularly useful for valuing e-commerce companies, where rapid revenue growth is a more important indicator than current profitability.
Asset-based valuation
The asset-based method values a company through the market value of its tangible assets – equipment, inventory, real estate and other fixed assets. Goodwill is added on top, accounting for brand recognition, customer loyalty and established processes.
This method suits manufacturing companies and firms whose assets make up a large share of total value especially well. It is less suitable for service and IT companies, where the main value lies in people and intellectual property.
What to do with the results?
The calculator gives three estimates that form a value range. The actual sale price also depends on factors the calculator does not cover: contract duration, owner replaceability, market position and negotiation dynamics.
For a professional valuation we recommend involving a business broker who knows the Estonian market and can manage the sale from start to finish. When you are ready to sell, add a free listing and reach thousands of business buyers.
Frequently asked questions
EBITDA is earnings before interest, taxes, depreciation and amortisation. To calculate it, subtract all operating costs (salaries, rent, materials, marketing) from revenue, but do not include loan payments, income tax or depreciation of fixed assets. You will find these figures in the income statement of your annual report, which you can download from the Business Register.
The calculator gives an approximate range based on average industry multiples. The actual value can differ by 30–50%, depending on customer base quality, contract duration, owner replaceability and market conditions. For a more precise result we recommend involving an Äriportaal business broker.
Each method values the company from a different angle: the EBITDA multiple measures earning power, the revenue multiple the size of the revenue base, and the asset-based method tangible assets. A fast-growing but still loss-making company gets a high revenue-multiple estimate but a low EBITDA estimate – both are correct. When all three methods give a similar result, the estimate is more reliable.
Industries have different risk levels, margins and growth potential. IT companies have higher multiples (5–8×) because they scale well and margins are large. Food-service companies have lower multiples (2–4×) because margins are thin and owner dependence is high. Browse Äriportaal listings to get an overview of actual sale prices in different industries.
Yes, significantly. A company operating for over 10 years is less risky for a buyer – the business model is validated by the market, the customer base is stable and processes are established. A company under 2 years old is riskier, because it is not yet clear whether the business model is sustainable. Our calculator reflects this in the multiple correction.
Before selling, get the accounting in order, document business processes, reduce owner dependence and stabilise the customer base. The less the company depends personally on the owner, the higher its value. You can find a thorough guide in the article Selling a business in Estonia.
Yes – enter the financial data provided by the seller and compare the calculator’s result with the asking price. If the seller asks significantly more than the calculator’s upper limit, there is a basis to negotiate. Browse companies for sale and leave your buying request so sellers can find you.
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