Skip to main content

Core Growth Group

EBITDA vs Revenue Valuation: Key Differences, Calculator & Use Case

Two smiling older adults in blue shirts review documents together at a desk with a laptop.

Key Takeaways EBITDA valuation measures what a business actually earns in operating cash flow, while revenue valuation measures top-line sales only, which means the same $5M HVAC or plumbing business can carry a vastly different price tag depending on which method a buyer applies. A $5M service business valued on revenue (0.5x to 1.0x) produces […]