Free Agency Valuation Calculator

What Is Your
Agency Worth?

Get your agency's estimated market value using 4 proven methods — Revenue Multiple, EBITDA, DCF, and SDE. Live blended valuation updates as you type.

4
Valuation Methods
Live
Calculation
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Revenue Multiple
ARR × multiplier based on agency type & growth
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$
%

Growth Rate >20% adds +0.5× bonus; >50% adds +1×. Calculated live.

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EBITDA Multiple
Earnings before interest, taxes, depreciation & amortization
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$

EBITDA multiples vary by agency profitability, recurring revenue share, and buyer type.

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DCF Method
Discounted Cash Flow — intrinsic value based on future earnings
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$
%
%

DCF sums discounted future cash flows plus a terminal value. Higher growth or lower discount rate = higher valuation.

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SDE Multiple
Seller's Discretionary Earnings — common for owner-operated agencies
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$

SDE includes owner's salary & perks added back to net profit. Common for agencies under $5M in revenue.

Agency Context Factors
%
Valuation Summary
Live
Revenue Multiple
—
Enter ARR to calculate
EBITDA Multiple
—
Enter EBITDA to calculate
DCF Method
—
Enter FCF to calculate
SDE Multiple
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Enter SDE to calculate
Blended Valuation
$—
Average of all 4 methods
Valuation Range
Low: — High: —
Best Buyer Match
Enter your financials to see buyer recommendations.
Confidence Score
—%
How It Works

4 Methods to Value Your Agency

No single method gives the full picture. Smart buyers and sellers use multiple approaches to triangulate a fair market value.

1

Revenue Multiple

The simplest and most common method for agencies with predictable recurring revenue. A SaaS-heavy agency commands a higher multiple (4–8×) than a project-based service agency (1–3×). Growth rate boosts the multiple: agencies growing >20% per year add +0.5×, and >50% growth adds +1×.

Valuation = ARR × Multiple × Growth Adjustment
2

EBITDA Multiple

Focuses on profitability rather than revenue. More reliable for agencies with high margins. Conservative buyers use 3×, strategic acquirers pay 5×, and premium buyers (PE firms acquiring platform agencies) may pay 8× EBITDA or more. Reliable when EBITDA exceeds $500K.

Valuation = EBITDA × Selected Multiple
3

Discounted Cash Flow (DCF)

The most rigorous method — projects free cash flows forward and discounts them back to present value. A terminal value (Gordon Growth Model) adds the value of perpetual cash flows beyond the projection period. Best for agencies with stable, predictable cash flows.

Valuation = Σ FCF×(1+g)^t/(1+r)^t + Terminal Value
4

SDE Multiple

Seller's Discretionary Earnings is the gold standard for owner-operated agencies under $5M revenue. SDE = net profit + owner salary + perks + non-recurring expenses. Smaller agencies trade at 2× SDE; larger, more systematized agencies can command 3–4×.

Valuation = SDE × Size-Bracket Multiple
Why It Matters

When Should You Value Your Agency?

Agency valuation isn't just for exits. Knowing your worth drives smarter decisions at every stage of growth.

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Preparing to Sell

Getting a realistic valuation range 12–24 months before exit helps you identify value drivers to improve — client retention, recurring revenue mix, and EBITDA margin — to command a higher multiple at close.

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Raising Investment

Investors use your valuation as the basis for equity stakes. Whether you're raising a growth round or bringing in a PE sponsor, a credible multi-method valuation strengthens your negotiating position.

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Partnership Buyouts

When partners exit or new ones join, a defensible valuation prevents disputes. Using multiple methods and showing your calculations builds trust and keeps the process professional.

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Strategic Planning

Tracking your valuation quarterly reveals which business drivers (recurring revenue, retention, EBITDA margin) move the needle most — focusing your growth strategy on what buyers actually pay for.

FAQ

Common Questions

What's the most accurate valuation method for a small agency?

For agencies under $5M revenue with an owner-operator structure, SDE Multiple is typically the most relevant. Buyers for smaller agencies are usually owner-operators themselves and focus on discretionary earnings. For larger, more systematized agencies, EBITDA Multiple becomes the primary benchmark.

What does the Confidence Score mean?

The Confidence Score measures how consistent the 4 methods are with each other. A high score (80–100%) means all methods produce similar valuations — strong signal for a reliable estimate. A low score means wide variance between methods, which usually signals that your agency has unusual characteristics or that some inputs need review.

Why does agency type matter for revenue multiples?

SaaS agencies (or agencies with SaaS-like recurring retainer models) command higher multiples because revenue is predictable and scales without proportional cost growth. Pure project-based service agencies have "lumpy" revenue that's harder to forecast, so buyers apply lower multiples to account for churn risk.

What discount rate should I use for DCF?

Most agency buyers use 10–15% as their hurdle rate (the minimum return they require). Conservative buyers or those in uncertain markets may use 15–20%. Using a lower discount rate produces a higher DCF valuation. The 12% default is a reasonable middle ground for most small-to-mid agencies.

How does client retention affect valuation?

Client retention is one of the top 3 value drivers in any agency acquisition. Buyers see high retention (85%+) as proof that the business can survive a change in ownership. Agencies with 90%+ annual retention routinely achieve 10–20% premium over market multiples.

Is this valuation legally binding?

No — this tool provides an indicative market estimate for planning purposes only. For legally binding valuations (M&A, tax, legal disputes), engage a licensed business appraiser or M&A advisor who can review your actual financial statements and apply professional judgment.

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