Calculator
Electrical Business Valuation Calculator
Find out what your Electrical business could be worth — enter revenue, net profit, your owner’s salary, and add-backs to get Seller’s Discretionary Earnings (SDE), then a value range from an industry multiple adjusted for recurring revenue, owner dependence, and growth. Free, no signup.
Free
Seller’s Discretionary Earnings (SDE)$198,000
Value drivers
$198,000 SDE2.7× multiple
Estimated business value
$534,600
Likely range $435,600 – $633,600 · Electrical owner-operator shops sell for ~3×–5× SDE
Estimate only — get a broker valuation before selling
Revenue cross-checkElectrical revenue multiple ≈ 0.45×–0.7×
$495,000How your multiple was built
Base multiple2.7×
Recurring revenue 10%—
10 yrs in business—
Owner manages, has a lead tech—
Revenue flat—
Adjusted multiple2.7×
The multiple is capped between 1.5× and 3.5× for owner-operator shops. Larger, team-run businesses trade higher on EBITDA — a different method.
Valuation at a glance
Estimated value (mid)
$534,6002.7× × SDE
Value range
$435,600 – $633,600Low to high on the multiple
SDE
$198,000Net profit + owner pay + add-backs
SDE margin
22.0%Target ~12%+ for a healthy shop
Revenue cross-check
$495,000Electrical revenue multiple ≈ 0.45×–0.7×
Valuation benchmarks
- SDE multiple (small shop)
- 3×–5×
- EBITDA multiple (service)
- 4×–6.5×
- Revenue multiple
- 0.45×–0.7×
- Recurring revenue lift
- +0.5× to +1×
Multiples anchored to small-business transaction data. A formal broker or M&A valuation will refine these for your books, market, and buyer type.
What you'll get
Enter earnings and add-backs
Add annual revenue, net profit, the salary you pay yourself, and other add-backs (interest, taxes, depreciation, and personal expenses). The tool builds your SDE — the earnings a buyer values.
Set your value drivers
Enter recurring/maintenance revenue %, years in business, how much the business depends on you, and your growth trend. These raise or lower the multiple.
See your value range
Get an estimated sale value and a likely range from your SDE and adjusted multiple, plus a revenue-based cross-check and a breakdown of how each driver moved the multiple.
How it works
- 1
Enter earnings and add-backs
Add annual revenue, net profit, the salary you pay yourself, and other add-backs (interest, taxes, depreciation, and personal expenses). The tool builds your SDE — the earnings a buyer values.
- 2
Set your value drivers
Enter recurring/maintenance revenue %, years in business, how much the business depends on you, and your growth trend. These raise or lower the multiple.
- 3
See your value range
Get an estimated sale value and a likely range from your SDE and adjusted multiple, plus a revenue-based cross-check and a breakdown of how each driver moved the multiple.
How much is a electrical business worth?
Most owner-operator home-service businesses sell for a multiple of their Seller’s Discretionary Earnings (SDE) — net profit plus the owner’s salary and other add-backs. Small electrical shops typically trade around 2×–3.5× SDE, with the exact multiple driven by how much recurring maintenance revenue you have, whether the business runs without you, how long you’ve been established, and whether revenue is growing.
This calculator uses the SDE method brokers apply to owner-operator shops: it builds your SDE, starts from a trade-specific base multiple anchored to real small-business transaction data, and adjusts it up or down for your value drivers before returning a likely price range. It also shows a rough revenue-multiple cross-check. Larger, team-run companies are usually valued on EBITDA at higher multiples — a different method this tool notes but doesn’t model. Treat the result as a starting point, then get a formal broker or M&A valuation before you buy or sell.
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View statesBusiness Valuation Calculator FAQs
How do I value a electrical business?
Start with Seller’s Discretionary Earnings: net profit + the owner’s salary + add-backs (interest, taxes, depreciation, and personal/one-time expenses). Multiply SDE by an industry multiple — typically 2×–3.5× for a small owner-operator shop. Example: $250,000 SDE at 2.8× is about $700,000. Recurring revenue, low owner dependence, and growth push the multiple higher.
What is SDE and how is it different from EBITDA?
SDE (Seller’s Discretionary Earnings) is net profit plus one owner’s compensation and discretionary add-backs — it reflects the total benefit to a single owner-operator, so it’s used for smaller shops. EBITDA does not add back owner pay, because it assumes a hired manager runs the company; it’s used for larger, team-run businesses and usually carries a higher multiple.
What increases the value of a home-service business?
Recurring maintenance-agreement revenue is the biggest lever — 40%+ of revenue on service plans can add half a multiple or more. A business that runs without the owner, a longer track record, healthy margins, and steady growth all raise the multiple. Heavy owner dependence, declining revenue, and thin margins lower it.
Is this business valuation calculator free?
Yes. Every tool on CloseCrew is free for contractors — no account required. Use it with the Profit Margin and Break-Even calculators to understand the earnings that drive your valuation, then get a formal broker valuation before a sale.
