Brand value estimate from revenue and EBITDA multiples.
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Multiples applied
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Valuation
About this calculator
DTC valuations have come back to earth since the 2021 peak. Where Thrasio-style aggregators paid 5-8× EBITDA, current buyers pay 3-6× for typical brands and 6-10× only for category leaders with strong moats. This calculator estimates valuation using both revenue and EBITDA multiples adjusted for buyer type and channel mix.
The math has two sides. Revenue multiple: typically 1.5-4× annual revenue for profitable DTC, with subscription/recurring brands at the high end and Amazon-primary at the low end. EBITDA multiple: 4-8× for healthy brands, with growth and margin profile pushing the range. Most transactions price within both ranges as a sanity check.
Buyer type matters significantly. Strategic acquirers (a brand acquiring a complementary brand) pay highest multiples because they capture synergies. Private equity pays disciplined multiples on profitability. Aggregators (still active but smaller scale post-2022) pay 3-5× EBITDA. Individual search-fund buyers and small PE pay lowest, often 2.5-4× EBITDA.
Pair with the DTC P&L Builder (clean P&L is essential to defend a multiple) and the Cash Flow Runway tool. The 12-18 month prep window before sale is where most multiple expansion happens — clean financials, documented SOPs, diversified channels, and growth trajectory all reward properly-prepared sellers.
Frequently asked questions
What multiple should I expect?
Profitable DTC: 2-4× annual revenue, 4-8× EBITDA in 2026 private market. Strategic acquirers may pay 5-7× revenue for category leaders. Aggregator/rollup buyers (Thrasio-style): 3-5× EBITDA at lower revenue multiples. Numbers are dramatically lower than 2021 peak.
Why are multiples lower than 2021?
2021 saw 6-10× revenue multiples driven by aggressive aggregators (Thrasio, Perch, Branded). Most have struggled or imploded since. Current buyers — strategics, PE, and remaining aggregators — pay disciplined multiples based on profitability, not growth-at-any-cost.
12-18 months minimum. Clean up financials, document SOPs, diversify channels if Amazon-only, document IP. Buyers pay for "buy and operate" simplicity — anything that'd make integration messy reduces multiple.
What about asset vs share sale?
Asset sale (buyer purchases inventory + IP, leaves liabilities) is more common for sub-$10M brands. Share sale (buyer takes the entity) is more common at $10M+. Tax implications differ significantly — consult an attorney before negotiating LOI structure.