Value Gap Calculator
See what your business is worth today vs. with its top five value drivers fixed, ranked by dollars.
Example scenario—not a forecast or verified benchmark. Enable JavaScript to edit inputs, view charts, save locally and export your analysis.
Example inputs
- Annual revenue
- 5,000,000
- Annual SDE or EBITDA
- 650,000
- Baseline multiple for your industry and size
- 4
- Earnings margin a well-run peer achieves
- 16
- Revenue growth, last 12 months
- 5
- Recurring or contracted revenue
- 15
- Largest customer share of revenue
- 18
- Owner dependency
- medium
- Management team depth
- partial
- Quality of financial records
- accrual
- Years until you might sell or raise capital
- 4
Example results
Your business is worth about $2.4M today and $4.8M with its value drivers fixed: a $2.4M gap, led by profit margin ($551K).
- Estimated value today
- $2,385,500
- Value with drivers fixed
- $4,760,000
- Value gap
- $2,374,500
- Your multiple today
- 3.67x
- Multiple with drivers fixed
- 5.95x
- Top 5 drivers, stand-alone value
- $1,688,000
- Value to create per year until exit
- $593,625
- Earnings margin
- 13%
What stands out
#1 Profit margin: $551K of value
$150K more earnings at 3.7x. Close the margin gap from 13% to 16% through pricing, direct-cost, and overhead work.
#2 Recurring revenue: $357K of value
0.55x on the multiple. Convert one-off work into service agreements; move recurring revenue from 15% toward 50%+.
#3 Growth rate: $293K of value
0.45x on the multiple. Lift growth from 5% toward 20%+ with a repeatable acquisition channel.
Fixing everything would make the business worth 2x what it is today
$2.4M to $4.8M. Margin and multiple gains compound, so the total exceeds the sum of drivers by $342K.
Next actions
- Close the margin gap from 13% to 16% through pricing, direct-cost, and overhead work. ($551K)
- Convert one-off work into service agreements; move recurring revenue from 15% toward 50%+. ($357K)
- Lift growth from 5% toward 20%+ with a repeatable acquisition channel. ($293K)
- Re-run this every 6 months to track the gap closing.
Model assumptions & limitations
- Baseline multiple of 4x is your input; company-specific adjustments are directional rules of thumb (e.g. up to +0.5x for 25%+ growth, up to +0.7x for 70%+ recurring revenue, up to -0.8x for a 40% customer).
- Driver impacts are stand-alone; fixing several together compounds (shown separately).
- Margin opportunity assumes reaching your 16% peer margin without losing revenue.
- This is not a formal valuation; actual offers depend on buyer type, deal structure, and market conditions.