Ecommerce valuation calculator

How ecommerce brands are typically valued

From about $5M of revenue, most buyers price an ecommerce brand as adjusted EBITDA times a multiple. Adjusted EBITDA is your reported EBITDA with defensible one-offs added back - owner pay above the market rate for the role (the excess only), genuine one-off legal or consulting bills - and the multiple is where the negotiation happens. Below $5M many buyers price on seller's discretionary earnings (SDE) instead, and a fast-growing brand with little or no EBITDA is usually priced on revenue.

The size bands

Revenue picks the band. These are the playbook's ranges for a premium process - clean books, positive EBITDA, credible growth, diversified channels, a strong brand and several bidders - in the 2025/26 market. Average, founder-dependent or Amazon-dependent brands typically trade below them, sometimes well below.

Near a band edge, read both bands. Buyers don't switch tables at an exact number, so a $4.9M brand and a $5.1M brand are the same business to them. Whenever you're within 10% of a line, the calculator shows the neighbouring band too.

Growth places you inside the band

Under 10% growth typically sits at the lower end of the band, 10-20% mid-range, 20-40% in the upper range and above 40% at the top - though above 40% many buyers get sceptical about how long it lasts. The worked example in Valuation & Exit is a $20M brand with $3M of EBITDA (a 15% margin) growing 25%: that sits in the upper half of the 5-9x band, so call it 8x, or $24M, if a competitive process creates tension.

Category premiums and discounts

From about $5M of revenue, category nudges the multiple. Below that, buyers mostly price the band.

Returns weigh on apparel in particular: above 25%, many buyers treat them as a deal-breaker, and across categories a return rate above 15% is a red flag in diligence.

One buyer or a competitive process

The same brand can land a long way apart. With a single buyer and no auction, expect the bottom of the band - 5-6x, or $15M-$18M, for the worked example - against $24M with real tension between bidders. That spread is why advisors exist, and why the calculator shows both ends rather than one number. Growth above 30% with EBITDA above $5M is where that tension really starts.

When there's no EBITDA to multiply

With EBITDA at or below zero, the buyers who pay are paying for growth, on a revenue multiple. It's typically used for fast-growing brands with little or no EBITDA: the table starts at 20% growth, and it's most common above 50%.

Subscription revenue with 80%+ retention can add a further 0.5-1x. Below 20% growth no revenue multiple applies, and the lever is EBITDA - positive EBITDA moves you onto the size bands above.

What it doesn't price

The calculator works from your numbers, so it can't see the things buyers discount for most: founder dependency, Amazon over 50% of revenue, any one customer over 25% of revenue, messy books or unclear IP. Each of those is a discount or a deal-breaker, and nobody can tell you how big in advance. If one of them describes your brand, read the range as the top of what's possible rather than what to expect.

Headline price vs cash at close

A multiple gives you a headline price, not what lands in the bank. Earnouts typically take 20-40% of the consideration, tied to one- or two-year targets: treat that part as upside, not value, and price the deal on the cash. In the worked example, a $24M offer with 80% cash at close is $19.2M, and after advisor fees, legal and QoE costs and the working-capital adjustment the day-one wire is roughly $18M. Cash at close beats an earnout. How to land at the top of the spread lives in Valuation & Exit.

Enter your numbers once and every calculator on this site reads from them. Sign in and use them from your dashboard to save them to your brand and pick them up on any device. The doctrine behind this one lives in Valuation & Exit.

Common questions

What is my ecommerce business worth?

As a guide, most buyers value an ecommerce brand above about $5M of revenue at adjusted EBITDA times a multiple set by size, growth, category and how many bidders turn up. A $20M brand with $3M of EBITDA growing 25% typically lands between about $15M-$18M with one buyer and $24M in a competitive process. The calculator on this page runs the same steps on your numbers: it gives an indicative range, not a price.

What multiple do ecommerce businesses sell for?

In a premium process in 2025/26, typically 2.5-4.5x EBITDA at $1M-$5M of revenue, 3.5-6x at $5M-$10M, 5-9x at $10M-$25M, 7-11x at $25M-$50M, 8-13x at $50M-$100M and 10-15x+ above $100M. Average, founder-dependent or Amazon-dependent brands usually trade below those ranges, sometimes well below.

Are ecommerce businesses valued on EBITDA or revenue?

Mostly EBITDA. From about $5M of revenue, adjusted EBITDA times a multiple is the standard method, and below that many buyers use seller's discretionary earnings (SDE). Revenue multiples, typically 0.5-3x, are used for fast-growing brands with little or no EBITDA: they start at about 20% growth and are most common above 50%.

How does growth change the multiple?

Growth decides where in the size band you land. Under 10% typically sits at the lower end, 10-20% mid-range, 20-40% in the upper range and above 40% at the top, although buyers get sceptical about how long very fast growth lasts. Growth above 30% with EBITDA above $5M is where competitive tension between bidders really starts.

Which ecommerce categories get a valuation premium?

From about $5M of revenue, beauty and skincare typically earn a 2-4x premium, health, wellness, supplements and pet 1-2x, and food and beverage base to 1x. Apparel usually takes a 1-2x discount and home goods up to 1x, while consumer electronics and accessories trade at base.

What is SDE?

Seller's discretionary earnings: EBITDA plus the owner's salary, benefits and one-off expenses. Many buyers price brands under about $5M of revenue on it, typically at 2.5-4.5x SDE. Build it from EBITDA, not net profit, because interest, tax and depreciation are buyer-specific and get added back before anyone prices the business.