Business Valuation Calculator UK

What this calculator does

This tool gives an indicative equity value for a UK trading company using the method most buyers actually apply: a multiple of adjusted EBITDA, converted to equity value by deducting net debt and adding any surplus assets.

It is built for UK SMEs typically valued between £500k and £25m. The output is an orientation figure. It is not a valuation and it will not stand up in front of a buyer, HMRC, a co-shareholder or a court.

How the calculation works

• Enterprise value = Adjusted EBITDA x sector multiple
• Equity value = Enterprise value - net debt + surplus assets

Three inputs decide the answer:

1. Adjusted EBITDA. Not statutory profit. Add back owner remuneration above market, one-off costs, personal expenses run through the company, and non-market related-party rent. See EBITDA adjustments for the five categories buyers apply.

2. The multiple. Each sector has an observed range. Where a specific business sits inside that range depends on revenue predictability, customer concentration, growth, margin, owner dependency and scale. See UK SME EBITDA multiples 2026.

3. Net debt. Bank debt, hire purchase, directors' loans, deferred consideration and other debt-like items, less cash. See Net debt and cash-free, debt-free.

Sector ranges used

These are broad observed ranges for UK SME transactions. A business with recurring contracted revenue, a management team in place and no customer above 10% of turnover sits at the top of its band. An owner-operated business with project revenue and a dominant customer sits at the bottom.

What the calculator cannot do

• It cannot normalise your EBITDA for you. If the earnings figure is wrong, everything downstream is wrong.
• It cannot price a minority stake. A minority holding needs a discount for lack of control and a discount for lack of marketability - use the Minority Share Value Calculator instead.
• It cannot produce a tax value. EMI, probate and IHT valuations follow statutory definitions and deliberately conservative conventions. They are not the same number as a sale value.
• It cannot account for the working capital peg, earn-outs or deferred consideration, all of which change the cash a seller actually receives.

When you need a real valuation

Use the calculator to sense-check a number you have been quoted or to frame an internal discussion. Commission an independent valuation when the number has to be defended:

• Before a sale process opens, so you have a walk-away figure and an evidenced EBITDA bridge.
• For an EMI grant, a probate return or an IHT claim, where HMRC will review the methodology.
• For a shareholder buy-out, buy-in or dispute, where the other side will instruct their own expert.
• For succession planning, where the freeze-date value fixes the tax position for a generation.

Optival publishes fixed-fee pricing on the pricing page. A Strategic Value Review starts at £950 and is credited against a full valuation commissioned within three months.

FAQ