business-valuation

Estimate business value using comparable transaction multiples across revenue, EBITDA, SDE, and net income.

Updated Aug 22, 2026
One-click install
npx skills add https://github.com/fritzgeraldz/Vibe-Managing --skill business-valuation-fritzgeraldz
Or copy as Structured Prompt for Agent▼
Please help me install this Agent Skill.
Skill: business-valuation
Source: https://github.com/fritzgeraldz/Vibe-Managing/tree/main/skills/finance/business-valuation
Command: npx skills add https://github.com/fritzgeraldz/Vibe-Managing --skill business-valuation-fritzgeraldz

SYSTEM DOCUMENTATION & REQUIREMENTS

What problem does it solve? Founders often need a credible estimate of what their business is worth for a raise, exit conversation, or internal decision, but cannot justify the cost of a formal appraisal for every scenario. This Skill produces a defensible indicative valuation range by applying market transaction multiples to the company's own financials. ## Core Features & Use Cases - Multi-Method Triangulation: Computes value under revenue, EBITDA, net income, and SDE multiple methods, then reports a range and an indicated average value. - Earnings Normalization: Derives EBIT, EBITDA, and SDE from raw P&L fields, including explicit owner compensation and one-time add-back adjustments. - Margin-Story Diagnostics: Compares revenue-multiple and EBITDA-multiple estimates to detect margin gaps and flag value-driver improvement opportunities. - Use Case: A founder of an $8M consumer-goods company asks what the business would sell for; the Skill computes EBITDA of $1.0M, applies comparable multiples, and returns an indicated value of roughly $7.7M with a $7.2M–$8.4M range and an escalation flag for a professional appraiser. ## Quick Start Estimate what my business is worth using my trailing twelve-month revenue, expenses, and owner compensation, and give me a value range with the methods used.

Frequently Asked Questions about business-valuation

High-intent search queries and answers about installing and using this skill.

FAQPage Schema
How do I estimate what my small business is worth?▼

Apply market transaction multiples to your earnings bases: multiply revenue, EBITDA, net income, or SDE by average multiples from comparable recent sales, then average the per-method estimates into an indicated value with a range. EBITDA multiples are the primary method for most small businesses.

What is the difference between EBITDA and SDE valuation multiples?▼

EBITDA multiples suit businesses with professional management, while SDE adds back owner compensation and one-time expenses, making it the right base for owner-operated micro-businesses under roughly $1–2M in revenue. SDE multiples typically run 1.5×–3.5× versus 3×–7× for EBITDA.

Can this valuation be used for a tax filing or actual business sale?▼

No, the output is an indicative estimate only, not a formal appraisal, fairness opinion, or tax valuation. For imminent sales, tax or estate filings, litigation, or buy-sell triggers, it escalates to a qualified appraiser, CPA, or attorney.

What financial data is needed to value a business with multiples?▼

You need trailing 12-month revenue, COGS, operating expenses, depreciation and amortization, interest, taxes, net income, plus owner compensation and one-time add-backs for SDE. Comparable sale multiples by industry and size band improve confidence; generic ranges are the fallback.

Why do revenue-multiple and EBITDA-multiple estimates diverge?▼

Divergence signals a margin difference versus comparables: a much higher revenue-multiple estimate means margins are below peers, flagging a margin-improvement opportunity, while a higher EBITDA-multiple estimate indicates above-peer profitability that justifies positioning up-range.

When should I use DCF instead of comparable multiples valuation?▼

Use DCF or the venture method for pre-revenue startups whose value rests on future potential, since trailing multiples understate them. Also prefer DCF when material signed-contract growth is not yet reflected in trailing financials.