Business Valuation Calculator — How Much Is My Business Worth?

Business valuation is the process of determining the economic value of a company. It helps owners, investors and buyers assess what a business is worth. Valuation is essential when selling a business, raising investment, completing a merger or acquisition, securing a loan against equity, or planning succession.

The three main approaches used in Poland are: the income approach (DCF — discounted cash flows), the market multiples approach (P/E, EV/EBITDA, revenue multiple), and the asset-based approach (net asset value). For small businesses and sole traders, multiples are most commonly used due to their simplicity.

For small and medium-sized businesses in Poland, P/E multiples typically range from 4x to 12x. Businesses with strong recurring revenue (SaaS, subscriptions) or a unique market position may achieve 10-20x. Cyclical or owner-dependent businesses often attract 3-6x.

A business valuation is useful before a planned sale or succession, when raising investment or bringing on a partner, when securing a loan against equity, in divorce proceedings if the business is jointly owned, in shareholder disputes, and as a regular strategic management tool.

A revenue multiple values the business as a multiple of annual revenue regardless of profitability — useful for startups and growth-stage companies. An earnings multiple (P/E) values the business as a multiple of net profit — better for mature, profitable businesses. Higher margin businesses justify higher revenue multiples.

DCF (Discounted Cash Flow) values a business based on projected future free cash flows, discounted back to present value using a discount rate. The calculator computes the PV of the FCF stream over the forecast period plus a terminal value (Gordon Growth Model). The higher the discount rate, the lower the valuation.

The calculator provides a highly indicative estimate only — errors of 30-50% are typical for multiple-based methods, and DCF is extremely sensitive to growth and discount rate assumptions. It does not account for ownership structure, off-balance-sheet liabilities, intangibles or industry risk. Treat the result as a starting point for negotiations, not a transaction price.

The most common exit strategies are: strategic sale (to a buyer in the same industry, often with a premium), financial buyer (PE/VC fund), management buyout (MBO), IPO (public listing — for larger businesses), family or employee succession, and liquidation or merger. Each strategy typically yields a different valuation multiple.

Key value drivers include: recurring and predictable revenue (subscription contracts, long-term agreements), customer diversification (no single-customer dependency), strong brand and unique market position, a capable management team independent of the owner, high operating margins, intellectual property and patents, and documented, scalable processes.

Choose a method: (1) Earnings multiple — enter annual net profit and P/E multiple; (2) Revenue multiple — enter annual revenue and multiple; (3) DCF — enter free cash flow, growth rate, discount rate and forecast years. The calculator returns an indicative business value with a min-max range (+/-30%). We recommend cross-checking all three methods and consulting an M&A adviser.