DIY Valuation
A valuation built from your real financials
Upload your actual financial statements and we turn them into a valuation you can explain when a buyer asks how you got there. You run the whole thing yourself, with no calls to schedule and no waiting on our team.
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Business Information
Your business details and industry.
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Financial Documents
Connect QuickBooks, or upload your statements and tax returns.
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Financial Adjustments
Check the numbers we pulled against your originals, one click away.
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Your Report
Your valuation, measured against comparable sales in your industry.
Your documents stay private and are never shared with buyers. Documents stay private
Sample Report Highlights
RIVERSIDE
PLUMBING LLC
Valuation Summary
Business Name
Riverside Plumbing, LLC
NAICS Code / Industry
238220 (Plumbing, Heating, and Air-Conditioning Contractors)
Enterprise Value
$1,950,000
The value is arrived at weighting the results from different valuation methods as follows:
Valuation Method
Value by Method
Adjustments for:
MarketabilityControl
Adjusted Value
Weighting
Weighted Value
Market Approach
Precedent Transaction Analysis
$1,859,545
0%0%
$1,859,545
60%
$1,115,727
Income Approach
Capitalization of Earnings
$2,075,000
0%0%
$2,075,000
40%
$830,000
Value Conclusion
Fair Market Value: 100% Interest - Private, Control Basis - Excluding Non-op Assets
100%
$1,945,727
Fair Market Value: Excess Working Capital
$0
Fair Market Value: Other Nonoperating Assets
$0
Fair Market Value: 100% Interest - Private, Control Basis - Including Non-op Assets
$1,945,727
Interest Appraised
100%
Value Conclusion
$1,945,727
Value Conclusion (rounded)
$1,950,000
Valuation Report
3
RIVERSIDE
PLUMBING LLC
Valuation Analysis and Results
Market Approach: Precedent Transactions Analysis
We identified and analyzed comparable transactions in the Plumbing, Heating,
and Air-Conditioning Contractors industry (NAICS code 238220) over the past
5 years, adjusting for size, growth, and profitability differentials.
Based on comparable transactions, the table below summarizes the distribution
of multiples observed at each percentile:
| Implied Price | Price/Net Sales | Price/SDE | Price/EBITDA | |
|---|---|---|---|---|
| Top 10% | $2,855,190 | 1.15 | 4.62 | 6.62 |
| Top 25% | $2,286,250 | 0.92 | 3.70 | 5.30 |
| Median | $1,859,545 | 0.75 | 3.01 | 4.31 |
| Low 25% | $1,488,685 | 0.60 | 2.41 | 3.45 |
| Low 10% | $1,117,825 | 0.45 | 1.81 | 2.59 |
We chose to use SDE and EBITDA multiples and applied the median values from
the percentile analysis for our valuation calculation.
| Annual Value | Multiple | Weighting | Implied Valuation | |
|---|---|---|---|---|
| SDE | $617,000 | 3.01 | 50% | $928,585 |
| EBITDA | $432,000 | 4.31 | 50% | $930,960 |
| Total Value | $1,859,545 |
The valuation calculation details are shown in the table above. The value
using the Market Approach is $1,859,545.
Valuation Report
8
RIVERSIDE
PLUMBING LLC
Income Approach: Capitalization of Earnings
We also applied an income-based approach to estimate the intrinsic value of
the business. We utilized the EBITDA and applied a capitalization rate that
reflects the company's risk profile and stable growth status.
Cost of Equity
Utilizing cost of capital premium data from BVR, we built up the cost of
equity as the following.
| Cost of Equity - Build up Method | |
| Risk-free Rate of Return (20-year treasury) | 4.50% |
| Equity Risk Premium (Dr. Damodaran) | 7.00% |
| Industry Risk Premium | 1.00% |
| Size Premium (Smallest Bracket) | 7.00% |
| Company Specific Risk Premium | 3.00% |
| Total Cost of Equity | 22.50% |
| Source: Cost of Capital Professional, 2025 (Business Valuation Resources, LLC). Used with permission. | |
Overall WACC is the following:
| Cost of Capital | Capital Structure | WACC | |
|---|---|---|---|
| After-Tax Equity Cost of Capital | 22% | 80% | 18% |
| After-Tax Debt Cost of Capital | 6% | 20% | 1% |
| Subtotal (Discount Rate) | 19% | ||
| Less: Long-Term Growth Rate | -3% | ||
| Cap Rate on Invested Capital | 16% | ||
Valuation Report
10
RIVERSIDE
PLUMBING LLC
Capitalization of Earnings Valuation
Calculation details are the following:
| Normalized Operations | |
|---|---|
| Revenue | $2,480,000 |
| COGS | $1,240,000 |
| Gross Profit | $1,240,000 |
| Gross Margin | 50.0% |
| Operating Expenses | $876,000 |
| Unadjusted EBITDA | $364,000 |
| Owner's Draw addback | $68,000 |
| Adjusted EBITDA | $432,000 |
| EBITDA Margin | 17.4% |
| Less D&A | $44,000 |
| Adjusted EBIT | $388,000 |
| Adjusted EBIT Margin | 15.6% |
| Less Taxes | $62,000 |
| Less Capital Expenditures | $38,000 |
| Plus D&A | $44,000 |
| Normalized Free Cash Flow | $332,000 |
| Discount Rate | 19.0% |
| Long-Term Growth Rate | 3.0% |
| Cap Rate | 16.0% |
| Capitalized Earnings | $2,075,000 |
| Enterprise Value | $2,075,000 |
Valuation Report
11