The sensitivity range is the honest part
Small shifts in growth and discount-rate assumptions move a DCF value more than most people expect — the range shown pairs a two-point-worse case (lower growth, higher discount rate) against a two-point-better one, so you can see how much the base case actually depends on getting those two numbers right.
Frequently asked questions
Why blend three methods instead of picking one?
Each method has a blind spot — a DCF is only as good as its growth and discount-rate assumptions, while multiples borrow whatever the market currently pays for similar businesses, good or bad. Looking at all three together, and where they disagree, tells you more than any single number.
What discount rate (WACC) should I use?
Small private businesses are typically discounted at 12-20% to reflect their higher risk and lower liquidity versus public markets — higher for earlier-stage or single-customer-dependent businesses, lower for stable, diversified ones.
Where do I find a realistic revenue or EBITDA multiple?
Multiples vary heavily by industry — a SaaS business might trade at 4-8x revenue while a local service business might trade at 2-4x EBITDA. Industry reports, business brokers, or recent comparable sales in your sector are the usual sources.
Last updated: June 2026