How to Value a Small Business in Nepal

Valuing a business is part science, part judgement. Most buyers and investors lean on three approaches, and the truth usually sits somewhere between them.

The first is trading comparables: looking at how publicly listed companies in the same sector are priced relative to their earnings (EV/EBITDA). The second is transaction comparables, which uses the prices paid in actual deals for similar private businesses. The third is discounted cash flow, which projects future cash and discounts it back to today.

For a Nepali SME, comparable multiples are usually the most reliable starting point. Apply a sector multiple to your EBITDA, then adjust for growth and how long you have been operating. Our free calculator does exactly this ΓÇö try it before you talk to any buyer.