How much is my business worth?
Use this free online tool to estimate your business's value in under 2 minutes. The calculation uses revenue and EBITDA multiples observed in the Portuguese market.
Free and without commitment. The estimate is indicative and does not replace a professional valuation.
- 1. Your business
- 2. Result
How is a business valued?
Valuing a business means estimating what a buyer may be willing to pay. There is no single absolute figure: value depends on earnings, sector, assets and business risk. A sound valuation is therefore usually presented as a range rather than an exact number.
There are several ways to value a business. This tool uses market multiples, a practical approach for an initial estimate of a Portuguese SME.
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1. EBITDA Multiple
EBITDA measures the profit a business generates from operations before interest, tax, depreciation and amortisation. It is widely used to value SMEs. Annual EBITDA is multiplied by a factor that varies by sector and risk. A business with €100,000 EBITDA and a 4× multiple would have a reference value of about €400,000.
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2. Revenue Multiple
When profit is irregular or difficult to determine, annual revenue can be used as a base with a multiple usually below 1×. It is mainly used to cross-check the EBITDA result rather than as a standalone method.
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3. Base Value Adjustments
Factors that affect risk and price are added to or deducted from the reference value, including business maturity, tangible assets and owner dependence. The more a business depends on one person, the greater the buyer's risk and the lower its value.
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4. Discounted Cash Flow (DCF)
DCF estimates the present value of future cash flows. It requires financial forecasts and a discount rate, so it is not part of this tool's automated calculation and is better suited to detailed financial analysis.
This tool provides an indicative estimate based on average market multiples. The actual transaction value always depends on detailed financial analysis, sector context and negotiation. Consider validating any valuation with a qualified professional before making decisions.
What makes a business more valuable?
Two businesses with the same revenue can have very different values. The main differences are the risk a buyer takes and the predictability of results. The most important factors are:
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Consistent and predictable profit — Stable results over time reduce risk for a buyer.
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Recurring revenue — Maintenance contracts, subscriptions and loyal customers can provide future revenue after the change of ownership.
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Low owner dependence — A business that operates without direct owner dependence through its team, processes and customer relationships is generally more valuable.
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Diversified customer base — Dependence on one or two customers increases risk; a broad customer base adds value.
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Tangible assets — Owned property, equipment and vehicles add value, especially in capital-intensive sectors.
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Brand, reputation and market position — A recognised brand and a strong niche position make the business more defensible.
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Organised and transparent accounts — Clear accounts and a transparent track record build confidence and can support a higher valuation and faster sale.
Improving these areas before selling can significantly increase the final value.
Learn how to prepare your business for saleFrequently asked questions
How is this estimate calculated?
Is the valuation exact?
What is EBITDA and where can I find it?
What if my business has no profit or irregular profit?
Why do businesses in the same sector have different valuations?
How long does it take to sell a business?
Will my data remain confidential?
I want to proceed with a sale. What is the next step?
Thinking of selling your business?
Prepare the sale carefully and, when ready, list your business for people actively looking for businesses for sale in Portugal.