There's no single answer, because business value depends on profit, not just revenue.
A common shortcut is "Seller's Discretionary Earnings" (SDE), the actual profit an owner takes home.
Small businesses (under $5M in sales) typically sell for 2 to 4 times SDE, according to sources like BizBuySell's Insight Report.
So a business with $1,000,000 in sales might be worth anywhere from $200,000 to over $1,000,000, depending on how much profit that revenue actually generates.
Key factors that move the multiple: profit margin, industry, growth trends, customer concentration, owner dependence, and recurring revenue.
A software company with high margins and $1M in sales will be worth far more than a low-margin retail shop with the same revenue.
Related: What Multiple Does a Business Sell For? A Complete Breakdown by Industry
