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What is your business actually worth?

Three ways of answering it, side by side, on your numbers. Not one figure pretending to be certain, because a business is worth a range and the range depends on how much of it walks out the door when you do.

A Business Edge Advisors accountant going through a valuation with a business owner

Your numbers

This works out automatically as you type. If nothing changes when you type, the worked explanation further down the page shows how each method goes.

Adjusted profit, which is what a buyer is actually buying$156,000

3x
0.8x

On profit

$468,000adjusted profit x 3

On sales

$1,096,000sales x 0.8

On assets

$240,000what is left if you sold up and stopped

Which puts you somewhere around$240,000 to $1,096,000and the width of that gap is the point

The sales method suits a business with contracts and recurring revenue. If your work is job by job, ignore it and look at the profit method.

Why we did not give you one number

Because there is not one. A business sells for what a particular buyer will pay on a particular day, and the three methods above answer three different questions. The profit method asks what the earnings are worth. The sales method asks what the revenue stream is worth, which only makes sense if that revenue keeps arriving without you chasing it. The asset method is the floor: what you could get by stopping, selling the utes and the stock, and paying out what you owe.

If the profit number comes out below the asset number, that is worth sitting with. It means the business is earning less than the gear inside it is worth, and that is a finding rather than a rounding error.

The number that moves the multiple most

How much of the business is you. If the customers ring you, quote from you and would leave if you left, a buyer is purchasing a job rather than a business, and the multiple sits at the bottom of the range. If there is a team, documented systems, contracts that renew and a manager already doing what you do, the multiple sits at the top. The same profit can be worth twice as much depending on nothing more than that.

This is why we ask what it would cost to replace you and take it off. A buyer has to pay somebody to do your job, so profit that only exists because you work for nothing is not profit they can bank.

How the arithmetic works

  1. Adjusted profit. Net profit, plus what you paid yourself, plus one off costs, less what it would cost to replace you.
  2. On profit. Adjusted profit multiplied by the multiple you chose.
  3. On sales. Sales multiplied by the sales multiple you chose.
  4. On assets. Your net assets, unchanged.

You set both multiples yourself. We have not built in a market rate, because a credible multiple depends on your industry, your size, your customer concentration and how transferable the business is, and any single number we printed here would be wrong for most of the people reading it.

What this is not

It is arithmetic on the numbers you typed and the multiples you chose. It is not a valuation, it is not an appraisal, and it must not be used for a sale, a purchase, a dispute, a divorce, an insurance claim or anything you lodge with the ATO. A real valuation looks at your contracts, your customer concentration, your lease, your staff, your industry and comparable sales, and it is signed by somebody who takes responsibility for it. Business Edge Advisors does not warrant that the output is complete, accurate or suitable for any particular purpose. Nothing here is financial, legal or tax advice.

Want a number you could actually act on?

If you are within a few years of selling, retiring or handing over, the useful work is not the number. It is what you change now so the number is bigger and the business is sellable at all, which usually means making it run without you. That is a conversation worth having early, and it starts with booking a time. The profit lever calculator shows you which numbers to work on first.


About this tool. Built by the team at Business Edge Advisors, Registered Tax Agent 20651000. The numbers you type stay in your browser and are not sent anywhere. Last reviewed 5 September 2026.