Business value with $1,000,000 in sales depends heavily on industry, profit margins, and valuation method, not revenue alone.

A common shortcut is the “revenue multiple,” which typically ranges from 0.5x to 3x annual revenue for most small businesses, meaning a $1M-revenue business might sell for roughly $500,000 to $3,000,000.

However, buyers usually care more about profitability. A more reliable approach uses SDE (Seller’s Discretionary Earnings) or EBITDA multiples, often 2x to 5x for small businesses.

So a company with $1M in sales but only $150,000 in profit might be worth $300,000 to $750,000, far less than one with the same revenue but higher margins.

An accurate valuation requires reviewing financials, industry benchmarks, and market conditions, ideally with a professional appraiser or business broker.