How the Amazon Business Valuation Calculator works
Amazon businesses usually sell for a multiple of seller discretionary earnings. The multiple rises with age, growth, diversification and low owner involvement, and falls with concentration risk.
Formula
- Valuation = SDE × Multiple + Inventory at cost
- Multiple starts at 2.5× and is adjusted by age, growth, concentration, owner hours and scale
Example
Roughly $250k–$350k plus inventory.
Trailing 12-month revenue: 500000Trailing 12-month profit (SDE): 100000Year-over-year growth %: 20Inventory value (at cost): 30000Number of SKUs: 6Top SKU share of revenue %: 45Owner hours per week: 10Business age (months): 30
Frequently asked questions
What is SDE?
Net profit plus the owner's salary, benefits and non-recurring costs added back.
Is this an appraisal?
No. It is a planning estimate. Get a broker valuation before selling.