How much is a business worth with $1,000,000 in sales?

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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

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