Valuation Lab · Calculator
An online retailer is valued on normalized EBITDA with a normal level of inventory delivered at closing, so inventory is never counted twice in the price. This calculator works from gross sales down: refunds and returns, product cost, fulfilment and platform fees give contribution; acquisition spend at a stated CAC brings in new customers while repeat revenue is tracked as its own cohort; fixed costs give EBITDA; and inventory days plus other working capital reconcile EBITDA to free cash flow as sales grow. The 2026 consumer products & e-commerce band runs 3.0x-4.5x at $1M-$3M EBITDA and 4.0x-5.5x at $3M-$10M.
Growth in e-commerce consumes cash before it produces it: every extra dollar of sales needs inventory and, if the customer is new, acquisition spend. The tool shows both, which is why free cash flow sits below EBITDA in every growth scenario and why buyers price a fast-growing store lower than its EBITDA alone suggests.
Repeat-customer share is the quality signal. A store whose sales are 60% repeat funds its growth from retained customers; one at 20% repeat is buying every sale again next year, and its value is hostage to the acquisition channel.
The interactive calculator loads here. The published example scenario below is the same model (2026.09.29-3) evaluated at the example inputs.
Indicative enterprise value, EV / normalized EBITDA (consumer products & e-commerce, $1M-$3M EBITDA): $4.8M. $3.9M to $5.8M at 3.0x to 4.5x; selected 3.8x
Net sales $7.4M after refunds; contribution $3.1M (42.0%) after product, fulfilment and platform costs; 20,073 new customers from $903K acquisition spend. Enterprise value is quoted on a cash-free, debt-free basis with a normal level of inventory and working capital delivered at closing. Inventory is not added again on top of the multiple. Band: Windsor Drake EBITDA multiples by industry, Aug 2026 (analyst ranges informed by GF Data Q1 2026, BizBuySell Q2 2026, NYU Stern Jan 2026).
Contribution margin: 42.0% · Normalized EBITDA: $1.3M · Inventory at closing: $484K · Free cash flow (yr 1): $1.2M
| Line | Value |
|---|---|
| Gross sales | $8.0M |
| Refunds and returns | -$640K |
| Net sales | $7.4M |
| of which repeat customers | $2.9M |
| Product cost | -$2.9M |
| Fulfilment | -$883K |
| Platform and payment fees | -$442K |
| Contribution | $3.1M |
| Acquisition spend (20,073 new customers x CAC) | -$903K |
| Fixed costs | -$900K |
| Normalized EBITDA | $1.3M |
| Inventory build for growth | -$48K |
| Other working capital | -$22K |
| Free cash flow | $1.2M |
| Band | 3.0x to 4.5x ($1M-$3M EBITDA) |
| Enterprise value | $4.8M |
| Equity value | $4.8M |
Enterprise value is quoted on a cash-free, debt-free basis with a normal level of inventory and working capital delivered at closing. Inventory is not added again on top of the multiple.
| Input | Value |
|---|---|
| Gross sales (annual) | $8,000,000 |
| Refunds and returns (% of gross sales) | 8% |
| Product cost (% of net sales) | 40% |
| Fulfilment and shipping (% of net sales) | 12% |
| Platform and payment fees (% of net sales) | 6% |
| Cost per new customer (CAC) | $45 |
| First-year net sales per new customer | $220 |
| Repeat-customer share of net sales | 40% |
| Fixed operating costs (annual) | $900,000 |
| Inventory on hand (days of product cost) | 60 |
| Planned sales growth | 10% |
| Other working capital (% of sales change) | 3% |
| Capital expenditure (annual) | $50,000 |
| Owner compensation normalization (+) | $0 |
| Selected EBITDA multiple (0 = band midpoint) | 0x |
| Excess cash | $0 |
| Debt | $0 |
The heatmap recomputes enterprise value across +/-20% of CAC and +/-10 points of repeat share. A rising CAC with a falling repeat share is the pattern that turns a profitable store into a cash consumer; the two together move value more than either alone. Click a cell to adopt it.
If you are weighing a sale and want a senior advisor to test these numbers against live buyer appetite, the first conversation is confidential and without obligation.
3.0x-4.5x normalized EBITDA at $1M-$3M of earnings, 4.0x-5.5x at $3M-$10M and 5.0x-7.0x above $10M in Windsor Drake’s 2026 ranges. Main Street stores below that size transact on seller discretionary earnings at lower multiples.
A normal level of inventory is included in the enterprise value; only inventory above or below that normal level is adjusted at closing through working capital. Adding all inventory on top of the multiple double counts it.
Because growth needs inventory and working capital before the sales arrive. The tool shows the inventory build and other working capital explicitly.
The new-customer share of net sales has to be bought every year: acquisition spend = new-customer sales / first-year sales per new customer x CAC. A higher CAC raises that spend and lowers EBITDA; a higher repeat share shrinks the sales that must be bought. The heatmap shows both effects together.
Enterprise value is quoted cash-free and debt-free; equity value adds excess cash and subtracts debt and debt-like items, before fees, taxes, escrow, rollover and earn-outs. Every method states its denominator, period (trailing twelve months unless labelled), currency (USD) and treatment of cash and debt. Results are ranges under stated assumptions, not statistical confidence intervals. Company inputs stay in the browser and are never transmitted. Benchmark snapshot 2026.09.22-1; model 2026.09.29-3; changes are recorded in the Valuation Lab changelog in the Windsor Drake repository.
Benchmark: EBITDA multiples by industry · Related: Business valuation calculator · DCF calculator · All valuation tools