How Much is My Company Worth? Quick Self-Assessment Method for Entrepreneurs in 30 Minutes

Updated on 5 June 2026

For an Italian entrepreneur considering strategic options — sale, capital raising, succession, partnership — the first question is always “how much is my company worth?”. This guide provides a 30-minute self-assessment method using EBITDA multiples and DCF basics, plus a scorecard for assessing realistic value range before engaging professional valuation. The method is not substitute for rigorous professional valuation — it is a strategic compass for initial orientation.

The four contexts where you need a valuation

1. Sale preparation: 12-18 months before launching sale process
2. Capital raising: pre-money valuation for VC/PE negotiation
3. Generational succession: fair value for family transfers
4. Strategic decision-making: assessing whether external options exceed standalone value

Each context requires different valuation depth: strategic compass (this self-assessment) sufficient for initial orientation; rigorous professional valuation required for actual transactions.

The “quick” method — EBITDA multiples in 10 minutes

Step 1 — Calculate your “normalised” EBITDA

Start with operating profit. Add back: depreciation, amortisation, owner compensation above market rate, personal expenses charged to company, one-off items (restructuring charges, exceptional revenue/costs). Subtract: founder compensation below market rate (if you’d need to replace yourself with EUR 150k salary), non-recurring revenue. Result: normalised EBITDA reflecting sustainable earnings power.

Pattern: Italian mid-market typical normalisation reduces headline EBITDA 5-15% (revealing personal expenses and one-offs). If your normalised EBITDA is significantly lower than reported, expect buyer DD to identify same items.

Step 2 — Find your sector multiple

Italian mid-market typical EV/EBITDA multiples by sector (2024-2025):

• Software/SaaS: 8-15x
• Healthcare/Medical devices: 8-13x
• Premium F&B: 7-12x
• Luxury/Fashion: 7-12x
• Specialty pharma: 8-13x
• Precision mechanics: 6-10x (Tier-1 OEM suppliers higher)
• Specialty industrials: 5-9x
• B2B specialist services: 6-10x
• Distribution/Wholesale: 4-8x
• Consulting/Professional services: 4-8x

Step 3 — Calculate Enterprise Value and Equity Value

Enterprise Value = Normalised EBITDA × sector multiple (use median for initial estimate). Equity Value = Enterprise Value − Net Debt + Cash − Minority Interests. The equity value is what shareholders actually receive.

Apply 7 corrections to refine: growth above sector (+/− 5%), margin above sector (+/− 5%), recurring revenue % (+/− 5%), customer concentration (-2-10%), management independence (-15% to +5%), sector consolidation (+/− 10%), geography (-5% Centre/South to +5% North). Compound correction range: ±40% from sector median.

The “precise” method — DCF in 30 minutes

Three-year cash flow projection × 1.5 sustainability factor + terminal value. Discount at WACC (typically 10-14% Italian mid-market). Less precise than full DCF but useful for cross-check against multiple method.

Simple DCF: average annual free cash flow × 6-8 years (effectively a multiple). Useful triangulation against EBITDA multiple method — if results diverge significantly, requires deeper analysis.

Self-assessment scorecard — what your company is really worth

Score each dimension 1-5 (1 = worst, 5 = best):

• Growth above sector: __
• EBITDA margin above sector: __
• Recurring revenue %: __
• Customer diversification (lower concentration): __
• Management independence from founder: __
• Sector consolidation phase: __
• Geographic positioning (North premium): __
• Brand strength: __
• Operational documentation quality: __
• Financial normalisation status: __

Score 40-50 (top quartile): premium multiple +20-30% over sector median. Score 30-39 (median): sector median multiple. Score 20-29 (below median): discount -10-20%. Score below 20: significant discount -20-40%.

When market value ≠ perceived value

Founders typically overestimate their company’s value 30-50%. Reasons: emotional attachment, overweighting of brand and history, underweighting of structural weaknesses, exposure only to favourable market data. Pattern: founders’ initial valuation estimates typically 30-50% above what buyers actually pay; this gap is the source of most failed sale processes.

Buyers typically present valuations 15-25% below market. Reasons: negotiation positioning, risk-adjusted assessment, conservative due diligence assumptions. Pattern: realistic market value sits at median of founder’s optimistic estimate and buyer’s conservative offer.

Frequently asked questions

How much does professional valuation cost?

EUR 15-40k for Italian mid-market business. Complex businesses (multi-segment, international, special situations): EUR 25-80k. Professional valuation provides rigour and defensibility worth far more than the cost for strategic decisions.

Can I trust the multiples I see online or in market reports?

Use cautiously. Online multiples often based on listed peer averages without Italian discount, growth/margin corrections, family-business factor. Pattern: online multiples typically 30-50% above realistic Italian mid-market private company values. Use as initial orientation, never as decision basis.

How do I handle operational real estate in my valuation?

Often appropriate to value separately. Operational real estate (factory, office) can be valued at fair market value and sold/leased separately. Frequent pattern in mid-market deals: business operations sold + real estate retained for ongoing lease income, or transferred to separate vehicle.

What if my industry has wildly variable multiples?

High variability signals sector dynamics warrant deeper analysis. Use median as base, then adjust significantly based on your specific positioning. For technology sectors with extreme dispersion (10x to 50x multiples), professional valuation essential for credible assessment.

Should I be optimistic or conservative in my self-assessment?

Honest. Optimistic self-assessment creates unrealistic expectations leading to failed sale processes. Conservative self-assessment may discourage value-creating actions. Aim for realistic median assessment plus explicit sensitivity range (high/low).