UK Business Valuation Calculator — EBITDA Multiples by Industry

Business valuation is as much art as science. No single method gives a definitive answer — the most credible valuations triangulate across multiple approaches. This tool uses three of the most widely applied methods in UK mid-market M&A.

The EV/EBITDA multiple is the dominant method in private company transactions. EBITDA is used as a proxy for operating cash generation because it strips out the effects of financing, accounting policy choices, and capital investment cycles. Industry multiples reflect what acquirers have historically paid for comparable businesses — higher-quality businesses (recurring revenue, strong management, defensible market position) trade at the top of the range; businesses with customer concentration or key-person dependency trade at the bottom or below.

The revenue multiple method is particularly relevant for early-stage or loss-making businesses, or for high-growth sectors — especially technology — where buyers pay for future revenue potential rather than current profitability.

The discounted cash flow (DCF) model values a business as the present value of its future free cash flows. This tool uses the Gordon Growth Model: Value = FCF × (1 + g) / (r − g). The blended range takes the low end of the lowest method and the high end of the highest — representing the realistic negotiating corridor for most transactions.