How to Value a Business in the UK
A practical valuation guide for UK owners and buyers, covering the methods that actually get used in real-world SME deals.
Last updated February 2026. 9 min read.
The three main valuation methods
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.
Typical EBITDA multiples by sector
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
What actually affects the price
- 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
Using the free valuation tool
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.
Try the free Dealdoor valuation tool
Get an instant range based on live UK sector multiples. No sign-up, no obligation.