eCommerce Business Valuation
Discover what your eCommerce or online retail business could be worth today
Typical Valuation for a eCommerce Business
| Metric | Typical Range |
|---|---|
| EBITDA Multiple | 3.0-5.0× |
| EBITDA Margin | 8-20% |
Market Overview
eCommerce businesses typically achieve valuations of 3.0-5.0× EBITDA in the UK SME market. Businesses with proprietary products, low customer acquisition costs (<20% LTV), high repeat purchase rates (>30%), and owned inventory command premium multiples (4.5-5.0×). Dropshipping or Amazon-only businesses trade at lower multiples (3.0-3.5×). Buyers prioritize product differentiation, unit economics, organic traffic, repeat customers, and platform diversification.
How to Value a eCommerce Business
The standard methodology for valuing a ecommerce business in the UK is EBITDA-based. A buyer will calculate your Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) and apply a multiple based on sector benchmarks, business quality, and growth prospects. For ecommerce businesses, that multiple typically ranges from 3.0-5.0×.
Use our free calculator to get an instant valuation estimate based on your actual revenue and profit figures.
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Company Valuation Calculator provides free, instant business valuations for UK SME owners. If your business generates between £250k and £1M EBITDA, we may be interested in acquiring it directly.