Free valuation & inventory tool
Practice Valuation Calculator: EBITDA Multiple Method
A common way to value a med spa or aesthetic practice is annual EBITDA times a multiple. With $400,000 of adjusted EBITDA, a 3x multiple gives $1,200,000 and a 5x multiple gives $2,000,000. This business valuation calculator lets you enter your own low, middle and high multiples, subtract debt and add cash, and see the range. It does not supply market multiples, because those depend on the deal.
Prepared by Prospyr · Reviewed October 3, 2026 · Free, no sign-up, runs in your browser
Use the trailing 12 months or a 3-year average. Normalize owner pay first.
Multiples to test (times EBITDA, your scenarios)
Starting values are placeholders for scenario math. They are not market data. Replace them with figures from your broker, advisor or appraiser.
Optional.
Optional.
Optional, for a sanity check.
Value range (enterprise value)
$1,200,000 – $2,000,000
Low · 3×
$1,200,000
Middle · 4×
$1,600,000
High · 5×
$2,000,000
That is 0.8× to 1.33× annual revenue.
A scenario tool, not an appraisal or an offer. Actual prices depend on the deal, the buyer, the market and diligence.
Sensitivity: value at each multiple
| Multiple | Enterprise value | Per $10,000 of EBITDA |
|---|---|---|
| 2× | $800,000 | $20,000 |
| 3× | $1,200,000 | $30,000 |
| 4× | $1,600,000 | $40,000 |
| 5× | $2,000,000 | $50,000 |
| 6× | $2,400,000 | $60,000 |
| 7× | $2,800,000 | $70,000 |
| 8× | $3,200,000 | $80,000 |
Business valuation formula: EBITDA times a multiple
- Enterprise value = adjusted EBITDA × multiple
- Equity value = enterprise value − debt + cash
- Implied revenue multiple = enterprise value ÷ annual revenue
The multiple expresses how many years of current earnings a buyer is paying for. Corporate Finance Institute describes the EV/EBITDA multiple as how many times a company's EBITDA an acquirer would pay for the whole business, and notes that offers for private businesses are often framed this way. The earnings figure has to be the same kind the multiple was set on. If you have not yet normalized owner pay, start with the EBITDA calculator.
Worked example: $400,000 of adjusted EBITDA
| Scenario | Multiple | Math | Enterprise value |
|---|---|---|---|
| Low | 3× | $400,000 × 3 | $1,200,000 |
| Middle | 4× | $400,000 × 4 | $1,600,000 |
| High | 5× | $400,000 × 5 | $2,000,000 |
The multiples here are scenarios chosen to show the arithmetic, not market data. With $100,000 of debt paid off and $50,000 of cash left in the practice, the middle case equity value is $1,600,000 − $100,000 + $50,000 = $1,550,000. Each turn of the multiple moves the price by $400,000, so the multiple deserves as much attention as the EBITDA figure.
What moves the multiple for an aesthetic practice
These are the questions a buyer asks. They are factors to prepare for, not numbers this tool applies.
- Provider dependence: does revenue leave if the owner leaves?
- Recurring revenue: membership and package revenue is often easier for a buyer to forecast than one-time visits. See memberships.
- Patient retention and rebooking: repeat patients support a higher price. Cohort retention reports are in analytics.
- Records quality: clean financials and add-backs with documentation shorten diligence.
- Lease, licenses and equipment: assignable lease terms, compliant medical oversight and equipment age all matter.
About published valuation multiples
Brokers and advisory firms publish multiple ranges for med spas and other practices, and the ranges differ by firm, year and size. They reflect each firm's own deals and views, not a public market price. This page does not reproduce them. If you use one, name the firm and date, treat it as an advisor's figure, and compare it with your own EBITDA basis before applying it.
Valuing a practice for sale or a partner buy-in is a job for an appraiser, broker or CPA. Use this calculator to see the shape of the answer first.
Frequently asked questions
How do you value a med spa?
Most sales are priced as a multiple of adjusted EBITDA, which is earnings before interest, taxes, depreciation and amortization after owner pay is normalized. Enterprise value equals EBITDA times the multiple. Buyers and appraisers also look at growth, provider dependence, patient retention, lease terms and equipment condition, and those move the multiple.
What multiple should I use?
Use the multiple your broker, advisor or appraiser gives you for your specific practice. This tool does not publish market multiples, and the starting values are placeholders for scenario math. Run a low, middle and high case, then look at the sensitivity table to see how much each turn of the multiple is worth.
Should I use EBITDA or SDE?
Small owner-operated practices are sometimes priced on seller's discretionary earnings, which add back all of the owner's pay. Larger practices with managers and several providers are more often priced on EBITDA after paying a replacement for the owner. Ask your advisor which basis a buyer will use, because a multiple only applies to the measure it was set on.
What is the difference between enterprise value and equity value?
Enterprise value is the price of the business before debt and cash. Equity value is what the owner receives after debt is paid off: enterprise value minus debt plus cash left in the practice. Many sales are cash-free and debt-free, where the seller keeps the cash and pays the debt.
Does revenue matter, or only EBITDA?
Both. EBITDA drives the price in an earnings-multiple method, and revenue is a sanity check. The tool shows the implied multiple of revenue so you can spot a result that looks out of line with your margins. A 20% EBITDA margin practice with revenue of $1.5 million has EBITDA of $300,000.
Is this an appraisal?
No. It is a scenario calculator that multiplies numbers you enter. A formal appraisal weighs the factors in an accepted standard, such as the earnings, risk and comparable-sale evidence, and is done by a credentialed appraiser. Use this tool to prepare for that conversation.
Sources and scope
- EV/EBITDA multiple. Corporate Finance Institute
Defines EV/EBITDA as enterprise value divided by EBITDA and describes its use for pricing private-business acquisitions.
- EBITDA: Definition, formula and limitations. Corporate Finance Institute
Formulas for EBITDA and why it is a non-GAAP measure that varies in how it is calculated.
A scenario calculator, not an appraisal, offer, or financial, tax or legal advice. Multiples are inputs you choose. Get a broker, appraiser or CPA before pricing or buying a practice.