Enter revenue, adjusted earnings, category, age, and growth profile. Get a directional range from market-style earnings multiples, not a binding offer or fabricated comparable deal set.

Methodology

How the ecommerce valuation estimate works

Worth estimates a directional range from seller-supplied SDE and fixed, inspectable adjustments. It does not pretend that a public calculator has completed buyer diligence.

Inputs used

Trailing-twelve-month revenue and seller-discretionary earnings (SDE)
Category, growth profile, and brand age
Largest customer, channel, and SKU shares
Subscription or auto-ship share
Founder hours, operational criticality, and ownership of key relationships

Formula and logic

Start with a 2.5x SDE anchor and add the selected category adjustment.
Multiply that base by fixed adjustments for revenue size, growth, age, SDE margin, concentration, recurring revenue, and owner dependency; cap the effective multiple between 1.2x and 4.5x.
Midpoint = SDE × effective multiple.
Low and high values apply a confidence spread around the midpoint. The spread starts at 18% and widens for defined diligence risks, up to a 38% cap.

Assumptions

The SDE entered by the user is already normalized; the calculator does not validate add-backs or reconstruct earnings.
Category, size, growth, age, margin, concentration, recurring-revenue, and owner-dependency brackets are fixed rules in the executable model.
The selected category affects the anchor only; it is not a claim that every business in that category trades at one market average.

Hypothetical worked example

This is a hypothetical input set for arithmetic transparency. It is not a transaction, comparable sale, forecast, market average, or promised outcome.

Revenue / SDE: $2,000,000 / $420,000
Profile: Beauty; Stable; 4 years old
Risk inputs: 8% top customer; 45% top channel; 12% top SKU; 15% subscription; founder works 30 hours/week and remains critical to operations and relationships

Effective SDE multiple: 1.88x
Indicative midpoint: $790,997
Indicative range: $545,788–$1,036,206

Limitations

No live comparable-sale feed, transaction sample, inventory valuation, working-capital calculation, debt schedule, tax structuring, or buyer-specific synergies are included.
A real offer still requires earnings normalization, source-account review, channel and cohort analysis, inventory checks, and legal and commercial diligence.

Data and source vintage

The executable model's calibration notes reference publicly observed 2019–2024 ecommerce M&A multiples and broker/adviser commentary, with worth anchor and category notes marked 2024–2026. The calculator does not claim a live market average or a disclosed transaction sample.

Last reviewed: 9 August 2026

Indicative valuation for an ecommerce business.