Digital Agency Valuation Calculator (2026 Multiples)
Digital agencies are valued on SDE (Seller's Discretionary Earnings) multiples. The key factors are recurring retainer revenue, client concentration, and owner dependency. Use our free calculator for an instant estimate.
Low
2x SDE
Average
3x SDE
High
5x SDE
Key Value Drivers
- Recurring Retainer Revenue Percentage
- Client Concentration (no client >20%)
- Owner / Founder Dependency
- Profit Margin (target 20%+)
- Team Size & Key Person Risk
- Revenue per Employee
2026 Business Valuation
Free appraisal based on real M&A data
Financials
Include all client billing — retainers, project fees, and one-off work.
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How to Value a Digital Agency in 2026
Digital agencies are complex businesses to value because their worth is heavily tied to relationships, talent, and recurring revenue. Unlike SaaS, agencies have no software moat — which is why buyers apply lower multiples and scrutinize client relationships carefully.
SDE vs. EBITDA for Agencies
Smaller agencies (under $5M revenue) are typically valued on SDE. Larger agencies are valued on EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization). Most agency acquisitions in the $500K–$5M range use 2–4x SDE as the framework.
How to Increase Agency Value
- Convert project clients to monthly retainers
- Hire account managers to reduce founder dependency
- Document all processes and service delivery playbooks
- Diversify your client base to reduce concentration risk
- Build proprietary tools or IP where possible
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