What Is Gross Margin?
Gross margin shows how much of each rupee of sales is left after the direct cost of making or buying what you sold.
Read guide →What Is Business Valuation?
Business valuation is the process of estimating what a company is worth. It matters when you sell, raise money, bring in a partner or plan for the future.
Common approaches include an earnings multiple, a revenue multiple, discounted cash flow and asset value. The right multiple depends on industry, growth, risk and size, so any quick figure is only a starting point.
Formula
Estimated Value = Annual Net Profit × Valuation Multiple
Example
A business earning ₹8,00,000 a year valued at a 3× multiple is estimated at ₹24,00,000.
Try it yourself
Use the free Business Valuation Calculator to work out your own numbers.
Open Business Valuation CalculatorFrequently asked questions
Is a calculator enough to value my business?
It gives a rough idea only. For a sale or investment, get a professional valuation.
What multiple should I use?
There is no single answer. Multiples differ across industries and change with market conditions, so research similar businesses.
More guides
What Is EBITDA?
EBITDA measures operating earnings before interest, tax, depreciation and amortization.
Read guide →Revenue vs Profit
Revenue is the money you bring in. Profit is what you keep after costs.
Read guide →BizCalc provides calculators and educational information for general informational purposes only. Results are estimates and should not be considered financial, tax, accounting or investment advice.