How to Value a Business in the UK

Earnings multiples

The most common method for trading businesses. Take the adjusted net profit or EBITDA and apply a sector multiple. A profitable café earning £80,000 a year at a 2.5x multiple is worth around £200,000.

Asset-based valuations

Used when the value sits in tangible assets: property, equipment, stock. Common for asset-heavy or loss-making businesses where the going concern value is below the breakup value.

Discounted cash flow

Forecast future cash flows, discount them back to today using a required rate of return. Rare for sub-£1m UK SMEs because the forecasts carry too much uncertainty.

Multiples reflect risk, growth and demand. These are typical UK ranges for owner-operated SMEs in 2026.

• Café and restaurant: 1.5x to 3.5x
• Pub and bar: 2x to 4.5x
• Convenience store: 1.5x to 3.5x
• E-commerce: 2x to 5x
• Healthcare and care: 3x to 8x
• Professional services: 2x to 5x
• Manufacturing: 2x to 5x
• SaaS: 3x to 8x revenue depending on growth

• Profit trend: a business growing 15% per year sells for more than a flat one
• Owner dependence: a business that runs without the owner commands a premium
• Customer concentration: spread is worth more than reliance on one big client
• Lease and location: long secure leases at fair rent add value
• Recurring revenue: contracted or subscription income beats project work
• Quality of records: clean books, on-time accounts, no HMRC issues

Our valuation tool applies live UK sector multiples to your net profit and gives a conservative, mid, and optimistic figure in 60 seconds. It is a starting point, not a formal valuation, but it sets a realistic expectation before you go to market.