Shark Tank Business Valuation Calculator – Based on Revenue, Net Profit and EBITDA.

This is an Updated and detailed Shark Tank Business Valuation Calculator, but if you want to calculate Post and Pre money Valuation then you can Calculate this Shark Tank Equity Based Valuation Calculator.
Otherwise, you can use this detailed valuation tool.

Shark Tank Business Valuation Calculator: How It Calculated

This calculator estimates the value of your business using three key financial metrics: Annual Revenue, Net Profit, and EBITDA. It applies an industry-specific multiple to each metric to calculate the valuation. Here’s the calculation.

1. Input Variables

• Annual Revenue (Revenue): Total income generated by your business in a year.
• Net Profit (Profit): Total profit after all expenses, taxes, and costs are deducted.
• EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. It measures operational profitability.
• Industry Multiple: A multiplier based on your industry. For example:
  • Technology: 10x
  • E-commerce: 7x
  • Manufacturing: 5x
  • Healthcare: 8x
  • Retail: 6x
  • AI & SaaS: 12x
  • Finance: 9x
• Custom Industry Multiple: If you want to use a custom multiplier, you can enter it here.

2. Calculation Formula

The calculator uses the following formula to estimate your business valuation:

Valuation = Financial Metric × Industry Multiple

Where:

• Financial Metric can be Revenue, Profit, or EBITDA.
• Industry Multiple is either the selected industry multiple or a custom value.

3. Valuation Calculations

The calculator performs three separate valuations based on the input metrics:

1. Revenue-Based Valuation: RevenueValuation = Revenue × Industry Multiple
2. Profit-Based Valuation: ProfitValuation = Profit × Industry Multiple
3. EBITDA-Based Valuation: EBITDAValuation = EBITDA × Industry Multiple

4. Industry Multiple Logic

• If you select a predefined industry, the calculator uses the corresponding multiple (e.g., 10x for Technology).
• If you enter a Custom Industry Multiple, it will override the predefined value.

Industry Multiple = 
   - Custom Industry Multiple (if provided and valid)
   - Predefined Industry Multiple (otherwise)

5. Example Calculation

Let’s say:

• Annual Revenue = $500,000
• Net Profit = $100,000
• EBITDA = $150,000
• Industry Multiple = 8x (Healthcare)

The valuations would be:

1. Revenue-Based Valuation: $500,000 × 8 = $4,000,000
2. Profit-Based Valuation: $100,000 × 8 = $800,000
3. EBITDA-Based Valuation: $150,000 × 8 = $1,200,000

6. Charts

The calculator also visualizes the results using three types of charts:

1. Bar Chart: Compares Revenue-Based, Profit-Based, and EBITDA-Based Valuations.
2. Pie Chart: Shows the proportion of each valuation type.
3. Line Chart: Illustrates the growth of valuation over time (e.g., past vs. current).

Why This Matters

• Revenue-Based Valuation: Useful for businesses with high revenue but low profit.
• Profit-Based Valuation: Reflects the actual profitability of the business.
• EBITDA-Based Valuation: Focuses on operational efficiency, excluding non-operational expenses.

How to Use

1. Enter your Annual Revenue, Net Profit, and EBITDA.
2. Select your Industry or enter a Custom Industry Multiple.
3. Click Calculate Valuation to see the results.