How much is my business worth?
Use this free online tool to obtain, in less than 2 minutes, an estimate of your business's value. The calculation uses revenue and EBITDA multiples practiced in the Portuguese market.
Free and without obligation. The estimate is indicative and does not replace a professional valuation.
- 1. Your business
- 2. Result
How is a business valued?
Valuing a business is estimating how much a buyer would be willing to pay for it. There is no single, absolute number: the value depends on what the business generates, the sector it operates in, its assets, and the associated risk. Therefore, a serious valuation is almost always presented as a range of values, not as an exact number.
There are several methods for valuing a business. This evaluator uses multiples, a practical approach to obtain a first estimate of an SME in Portugal.
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1. EBITDA Multiple
EBITDA (earnings before interest, taxes, depreciation, and amortisation) measures the company's ability to generate profit from its activity. It is the most commonly used indicator for valuing SMEs. The annual EBITDA is multiplied by a factor (the "multiple") that varies depending on the sector and risk. A company with an EBITDA of €100,000 in a sector with a multiple of 4× would have a reference value of around €400,000.
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2. Revenue Multiple
When profit is irregular or difficult to ascertain, annual revenue is used as a basis, applying a multiple (usually less than 1×). This primarily serves to validate the result obtained by EBITDA, not as a standalone method.
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3. Adjustments to the Base Value
Factors that influence risk and price, such as business maturity, tangible assets (real estate, equipment), and owner dependency, are added to or subtracted from the reference value — the more a business depends on one person, the greater the risk for the buyer and the lower the value.
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4. Discounted Cash Flows (DCF)
DCF estimates the present value of the cash flows that the company may generate in the future. It requires financial projections and a discount rate, so it is not part of the automatic calculation of this tool. It is more suitable for detailed financial analysis.
This simulator provides you with an indicative estimate based on average market multiples. The actual value of a transaction always depends on a detailed analysis of the accounts, the sector context, and negotiation between the parties. We recommend validating any valuation with a professional (accountant, M&A consultant, or appraiser) before making decisions.
What makes a business worth more?
Two businesses with the same revenue can be worth very different amounts. What separates a high valuation from a low one is primarily the risk the buyer assumes and the predictability of results. Factors that weigh the most:
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Consistent and predictable profit — Stable results over the years reduce the risk for the buyer.
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Recurring revenue — Maintenance contracts, subscriptions, or loyal customers ensure future revenue after the ownership change.
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Low owner dependency — If the business operates without directly depending on the owner (team, processes, own customers), it is worth more.
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Diversified customer base — Depending on one or two customers is risky; a broad customer base adds value.
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Tangible assets — Owned properties, equipment, and fleet add value, especially in capital-intensive sectors.
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Brand, reputation, and market position — A recognised brand and a strong position in a niche make the business more defensible.
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Organised and transparent accounts — Clear accounting and a transparent history inspire confidence and translate into a higher valuation and faster sale.
Improving these points before selling can significantly increase the final value.
See how to prepare your business for saleFrequently Asked Questions
How is the estimate from this simulator calculated?
Is the valuation exact?
What is EBITDA and where can I find it?
What if my business has no profit or has irregular profits?
Why do companies 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 the sale. What is the next step?
Thinking of selling your business?
Prepare for the sale calmly and, when you're ready, advertise your business to those actively looking for businesses for sale in Portugal.