How much is a business worth that makes $300,000 a year?

A business earning $300,000 a year is typically worth somewhere between $600,000 and $1.2 million, assuming that figure represents annual profit (SDE or EBITDA) rather than revenue.

That range comes from applying a common valuation multiple of roughly 2x to 4x earnings, which is standard for many small, owner-operated businesses. Where a specific company lands within (or outside) that range depends heavily on factors like industry, growth trajectory, customer concentration, owner dependence, and the quality of financial records. A business in a high-demand sector with recurring revenue and a strong management team in place could command a multiple well above 4x, while one that's highly dependent on the owner or operating in a declining industry might sell closer to 2x or lower.

It's also worth clarifying what "$300,000 a year" actually means before applying any multiple. If that number is revenue rather than profit, the multiple-based math above doesn't apply, and the real value could be significantly lower once operating costs are factored in. Getting this distinction right, and correctly calculating Seller's Discretionary Earnings or EBITDA, is where a rule-of-thumb multiple stops being useful and a formal valuation becomes necessary.

Why a Formal Valuation Beats a Rule-of-Thumb Multiple

Multiples give you a ballpark, but they don't account for your specific financials, comparable transactions in your industry, or the methodology a lender, court, or the IRS will expect to see. Equity Business Valuation Services prepares certified business valuations using income, market, and asset-based approaches, reconciled into a defensible concluded value and documented in a report prepared in accordance with USPAP. This matters most when the valuation supports a sale, SBA financing, estate or gift tax filing, or litigation, since a generic multiple won't hold up under that level of scrutiny.

If you want a precise number for your business rather than an estimate, you can request a valuation or review our frequently asked questions for more on how the process works.