About the AI Business Valuation
What is the AI Business Valuation?
Most small and mid-sized businesses change hands at a multiple of revenue or EBITDA. This business valuation tool applies indicative multiples for your industry and blends the revenue- and EBITDA-based values.
Multiples are adjusted for growth (1% per point above or below 15%, within ±40%) and for how dependent the business is on its owner. Net debt is then deducted to get equity value.
How to use the AI Business Valuation
- Industry (sample: IT & professional services (1.5×, 10×))
- Annual Revenue (₹) (sample: 5,00,00,000)
- Annual EBITDA (₹) (sample: 60,00,000)
- Revenue Growth (% per year) (sample: 20)
- Net Debt – borrowings minus cash (₹) (sample: 50,00,000)
- Business Size & Dependence on Owner (sample: Small / owner-dependent (−25%))
- Press Value My Business (results also refresh as you type). The result card shows the Estimated Equity Value, along with Enterprise value (blended), Value on revenue multiple, Value on EBITDA multiple and Range (±20%).
Formula used
Equity value = Average(Revenue × EV/Revenue, EBITDA × EV/EBITDA) × Adjustments − Net debt
- Adjustments = growth factor × size factor
If EBITDA is not positive, only the revenue multiple is used.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Industry | IT & professional services (1.5×, 10×) |
| Annual Revenue (₹) | 5,00,00,000 |
| Annual EBITDA (₹) | 60,00,000 |
| Revenue Growth (% per year) | 20 |
| Net Debt – borrowings minus cash (₹) | 50,00,000 |
| Business Size & Dependence on Owner | Small / owner-dependent (−25%) |
| Result | Value |
|---|---|
| Estimated Equity Value | ₹4,81,56,250 |
| Enterprise value (blended) | ₹5,31,56,250 |
| Value on revenue multiple | ₹5,90,62,500 |
| Value on EBITDA multiple | ₹4,72,50,000 |
| Range (±20%) | ₹3,85,25,000 – ₹5,77,87,500 |
| Note | Indicative multiples for Indian private businesses; actual deals depend on buyers, audits and negotiation |
Tips for using the AI Business Valuation
- Clean, audited accounts and a second line of management raise the multiple buyers will pay.
- Normalise EBITDA by adding back one-off costs and owner perks before valuing.
- For a formal valuation (for fundraising under FEMA or Income Tax rules), use a registered valuer.