Company Valuation Based on Revenue Calculator

This calculator estimates a company's valuation based on its revenue. It uses a multiple of the company's revenue to determine its value. The multiple can vary based on industry, growth prospects, profitability, and other factors.

Input Parameters

Calculation Results

Company Valuation

$0

Based on the provided inputs and the industry revenue multiple.

Calculation Formula

Valuation = Revenue × Industry Multiple × (1 + Growth Rate) × Profitability Rate

Where:
- Revenue: Annual revenue of the company.
- Industry Multiple: A factor representing the industry's typical valuation multiple for revenue.
- Growth Rate: Annual growth rate of the company.
- Profitability Rate: The company's profitability rate.

Company Valuation Based on Revenue Calculator Usage Guide

Learn how to use the Company Valuation Based on Revenue Calculator and its working principles

How to Use the Calculator

  1. Enter the company's annual revenue in the "Annual Revenue" field.
  2. Input the industry revenue multiple as a percentage in the "Industry Revenue Multiple" field. This multiple can vary based on industry standards.
  3. Provide the company's annual growth rate in the "Annual Growth Rate" field.
  4. Enter the company's profitability rate in the "Profitability Rate" field.
  5. Click the "Calculate" button to compute the company's valuation.
  6. The result will be displayed in the "Company Valuation" field.

Understanding the Formula

The calculator uses the following formula to estimate the company's valuation:

Valuation = Revenue × Industry Multiple × (1 + Growth Rate) × Profitability Rate

This formula takes into account the company's revenue, industry standards, growth prospects, and profitability to provide an estimated valuation.

Example

For instance, if a company has an annual revenue of $1,000,000, an industry revenue multiple of 2%, a growth rate of 5%, and a profitability rate of 20%, the valuation would be:

$1,000,000 × 0.02 × (1 + 0.05) × 0.20 = $46,000