Earnings Multiple
EBITDA × industry multiple — the most common UK SME valuation method, used across UK business brokerage and accounting practices.
Empire AI Finance
Free Business Valuation Calculator for UK Businesses
Use this free UK‑focused business valuation calculator to estimate the value of your business using three industry‑standard valuation methods: earnings multiple, discounted cashflow (DCF) and asset‑based valuation. Designed for UK founders, accountants, advisors and buyers.
Step 1 — Enter Your Business Numbers
£
Total turnover for the last 12 months.
£
Profit after costs — used if EBITDA is left blank.
£
Earnings before interest, tax, depreciation and amortisation.
£
Property, equipment, stock and cash on the balance sheet.
£
Loans, creditors and other obligations.
%
Expected annual growth used in the DCF projection.
×
Typical UK range: 2× – 6×, depending on sector and stability.
%
Typically 10–15% in UK SME markets.
Triangulated UK Valuation
—
Enter EBITDA, a multiple and your net assets to see your valuation range.
Step 2 — Three Valuations
- Earnings multiple
- £0
- Discounted cashflow (5 yr)
- £0
- Asset‑based
- £0
All figures in GBP (£). Clarity and decision support only — not financial advice.
Offer this to your clients
Deliver a professional UK valuation tool under your own firm's brand.
How This Business Valuation Calculator Works (UK‑Specific)
This calculator uses GBP (£) throughout and applies valuation methods commonly used in UK SME acquisitions, UK business brokerage, UK accounting practices and UK investor analysis. You'll get a triangulated valuation, giving you a realistic range rather than a single number: low (asset‑based), mid (earnings multiple) and high (DCF).
Discounted Cashflow (DCF)
Five years of cashflow grown at your growth rate and discounted back at 10–15%, the typical UK SME discount range. A future‑earnings valuation.
Asset‑Based Valuation
Net assets less liabilities. Useful for property‑heavy businesses, manufacturing, trades and other asset‑rich companies.
Worked Example (UK Business)
- EBITDA
- £120,000
- Industry multiple
- 3.5×
- Net assets
- £80,000
- Growth rate
- 6%
- Discount rate
- 12%
Earnings multiple: £120,000 × 3.5 = £420,000
DCF (5‑year projection): ≈ £510,000
Asset‑based: £80,000
Triangulated valuation: £80,000 – £510,000 (realistic UK SME valuation range)
Who This Calculator Is For
- UK founders
- UK accountants
- UK advisors
- UK brokers
- UK investors
- UK buyers
- UK sellers
Business Valuation FAQ (UK)
How do I value my business in the UK?
Most UK SMEs use EBITDA × industry multiple, supported by DCF and asset‑based checks.
What multiple should I use?
Typical UK SME multiples range from 2× to 6×, depending on sector and stability.
Is this calculator accurate?
It uses the same methods UK accountants and brokers use for initial valuations.
Does it work for limited companies?
Yes — LTDs, LLPs, sole traders, and partnerships.