Many of the available valuation tools and services work on a freemium principle. This means that either the you can have access to the service for free but a continuous use requires a payment, or that a free access has limited features (e.g., limited number of valuation methods or no access to valuation reports). On this page you will find descriptions and our reviews of free and freemium business valuation calculators and services that are divided into three categories:
For a quick and very rough estimation, a free business valuation calculator can be used. These calculators are very simple, requiring only a few figures as an input, hence often leading to fairly inaccurate estimates of the company value. It is our recommendation that the values provided by these calculators are not used in final decision making.
When you need a more accurate estimate, we recommend using more advanced valuation tools which are completely automated (i.e., the user inputs the data and the system calculates the value of the business automatically). These valuation tools may combine multiple valuation methods and require inputting more data, which means that the estimates are more reliable than the ones you get from the simple valuation calculators.
In addition to valuation calculators, some companies offer services that use a team of experts that perform the company valuation based on the data provided by the business owner. We describe these valuation services but do not provide any reviews of them, for we cannot unfortunately evaluate the quality of these services. Usually free business valuation is used as a customer acquisition tool by, e.g., business brokers.
Advanced business valuation calculators
Biz|Equity
BizEquity provides a web-based solution that is easy-to-use.
- You are required to input both income statement and balance sheet data, projected growth information and some details on operations
- BizEquity has a large database of peer company data, and the valuation report includes comparisons to peer companies in the same industry
- Based on different factors, the service generates four different valuations: asset value, equity value, enterprise value, and liquidation value
- The trial version of the service provides an estimate of the valuation that is visible for only a few seconds. To get a valuation report and to explore the valuation further, you are required to subscribe to the service. A sample valuation report is also available
- Simple free business valuation calculator is available, otherwise $499,99/year
creditreports.dk
Besides its main product, credit risk reports, this service offers a comprehensive tool for Danish company valuation.
- Valuation tool includes history data and future estimates
- Uses official data from Danish Central Business Register, over 300 000 companies
- Valuation is based on five valuation methods, where applicable
- User can modify future estimates and create own scenarios
- Demo-account available for testing the software without registering
- Provides a free sample report
- Currently in beta phase offering unlimited reports for free
- Future pricing includes 3 free reports per month, additionals 8€ / report or monthly plans from 150€ / month
Equidam
Equidam is a mixture of a software company and an evaluation advisory that offers a nice online tool for DCF-valuation.
- It takes about 30-60 mins to input the required data for the service:
- 54 multiple choice questions about the competition, management, etc. + approximately 20 input and balance sheet inputs
- If you are currently raising funds, or have done so in the past, additional five to ten inputs are required
- After completing the survey, the valuation result is displayed immediately
- The system uses scorecard, check-list, venture capital, Equidam’s modified DCF, and DCF with multiples methods
- The tool is very user-friendly, and the web-interface is easy-to-use
- Lacks valuation based on multiples
- Simple free business valuation calculator available, Basic $499/year, Pro $749/year
ExitAdviser
ExitAdviser is a comprehensive solution for business owners who are willing to move forward with selling their business. For users that are just looking for a quick simple company valuation calculator, one based on DCF method is provided on the ExitAdviser web site.
- Minimum input values are net profit and estimated growth rate for four years
- In addition, one can add Seller’s Discretionary Expenditure, Current Assets and Current Liabilities
- No registration is needed to use the calculator
- A more in-depth valuation requires signing up for one of their subscription plans. The full plan includes market situation evaluation tool, business valuation calculator based on DCF, a go-to market tool with a Google Ads package and necessary legal forms for closing the deal once a buyer is found
- All in all, ExitAdvisor is quick and easy to use for simple calculations, but it does not offer a variety of different methods and weights. Instead, the focus is on facilitating the selling process
- Simple free business valuation calculator is available, full service is $258 for a year
Valuatum Estimator
Valuatum Estimator company valuation tool is a web-based solution aimed at small business owners who are looking to find out the value of their business.
- Evaluation is done by giving income statement and balance sheet data for at least the most recent year
- All in all, there are 118 fields to be filled in
- The software chooses a combination of valuation methods most suitable for the situation. These methods include discounted cash flow method, valuation multiples method using several different multiples (e.g., P/E and EV/EBITDA), and ROE vs. P/BV
- Additionally, a valuation based on EBIT-% vs. P/Sales is provided in case a company currently generates neither profit nor positive cash flows
- Valuatum has a database of up to 200,000 companies that is used in the comparative analysis
- Valuatum Estimator estimates future balance sheet and income statement figures based on the input data. You are also given an option to modify these estimates manually in order to test for different scenarios
- You are provided with a highly detailed report including financial statement data and all the valuation results, as well as detailed explanation of the methodology and terminology. Valuatum provides a free company valuation sample report
- Valuatum Estimator is a freemium service (free use for an unlimited time). A premium version is also coming but there is no further information available.
ValuSource
ValuSource has several different packages for different user profiles. Their package for professional use can be chosen to suit IFRS or GAAP accounting standards.
- The evaluation is done by using either eight, eleven or eighteen methods. The most advanced package uses three asset-based calculation methods, five income methods and nine market approaches. In their more advanced packages, the weights of the methods can be customized.
- Based on the package, the input of information to the system can take 30-90 minutes
- Due to close collaboration with Microsoft, the formulas, formats, and reports are easily customized in Word and Excel. ValuSource also allows you to use their previous Excel files including financial numbers to calculate valuations.
- In addition to valuation software they sell access to related databases (e.g., market comparables)
- Several sample reports can be found on the website. The website also has an extensive library of video tutorials.
- A free trial of two weeks, one time purchase of software varies from $197 to $1295
ValuTrax
ValuTrax provides a web-based solution for company valuation at a reasonable price.
- Value of the company is calculated based on income statement and balance sheet data inputted by the user, and market data.
- ValuTrax uses three methods: multiples of market data, multiples of discretionary earnings, and buyer’s choice
- A comprehensive tutorial with good video library can be found from the ValuTrax website
- A 16-page valuation report is generated automatically and can be downloaded either in Word or PDF format
- ValuTrax provides a free 14-day trial (credit card required). Otherwise the cost is $299/year.
Valuation services
BizEx
BizEx provides valuation services, such as advisory, for both business buyers and sellers. They also provide a free business valuation calculator on their website. The valuation report can be saved by leaving contact information.
The free calculator requires you to input data including sales, depreciation and some other figures to determine the discretionary earnings of the business. It also requires you to answer few questions about earnings trend and risk factors of the business as well as choosing the industry business is operating in. The calculator provides a valuation based on the discretionary earnings and calculates a valuation multiple of the earnings. Here is more information on the free business valuation calculator. No other information on the prices is given on the website.
Smergers
Smergers is an Indian company that focuses especially on businesses operating in the emerging markets. They offer a free business valuation calculator on their website that uses EV/EBITDA as a multiple to determine an approximate value for your business. Their database consists of more than 25,000 peer companies operating in several industries. Here you can find a review of the free calculator.
For a fee of approx. 300 € they provide a detailed business valuation report compiled by their team of professionals using several valuation methods, including DCF and valuation multiples. This requires the business owner to submit additional documents after which it takes Smergers 20 business days to prepare the report.
Smergers’ main business is providing a service that brings businesses and investors together. For a price of approx. 650 € business owners may purchase Smergers’ full services including an option to list the business for sale on their website. If a sale is initiated as a result, Smergers charges a 1 % founders fee.
MHA Monahans
MHA Monahans is an independent chartered accountancy group based in UK. In addition to providing a wide range of services including Audits, Business Insolvency and Recovery and Corporate Finance, they help business owners to sell their businesses and offer a nice and simple online Business Valuation Calculator.
It takes just a few minutes to input the needed data to the calculator:
- 3 multiple choice questions about the management and customer base, and 10 input and balance sheet inputs
- The Business Valuation Calculator available on their website and is free to use.
Digital Exits
Digital exits is a business broker that concentrates on online companies making an annual profit of $100,000-$3,000,000. While their main business is helping business owners to sell their companies, they provide free valuation services as a part of their business. Unfortunately they do not disclose the details of the business valuation process on their web site. Free valuation is offered, but no additional pricing info is given.
Simple business valuation calculators
- BizEx – A simple DCF calculator
- CalcXML – A very simple online calculator based on the DCF method
- ExitAdviser – A slightly more comprehensive DCF calculator
- Smergers – A valuation calculator based on EV/EBITDA multiplier
- Black Hill Federal Credit Union – A simple valuation calculator based on EBITDA and growth rate.
- MassMutual – A very simple calculator of BV. It takes only 2 to 5 minutes to complete the valuation.
Are we missing something? If you know of a service that you think deserves a spot on this page, let us know!