How to value an ecommerce business

To value an ecommerce business, multiply its trailing annual profit (or SDE) by a market multiple of about 2.4× to 3.8×. A store earning $120,000 a year in profit is typically worth roughly $288,000 to $456,000, with verified, growing, low-owner-involvement stores landing at the high end.

The three-step method

1. Find earnings.Total the store’s net profit over the last 12 months, or calculate SDE : net profit plus the owner’s salary and one-time or personal add-backs. The SDE calculator does this for you.

2. Apply a multiple. Multiply earnings by 2.4 for the low end and 3.8 for the high end of the typical fair-value band. The valuation calculator returns the range instantly; the revenue multiple calculator checks whether a given asking price is fair.

3. Adjust within the band. Move toward the high end for verified revenue, durable growth, diversified traffic, recurring revenue, and low owner involvement; toward the low end for concentration risk, decline, or unverified numbers.

Why profit, not revenue

Established ecommerce stores are valued on a profit multiple, not a revenue multiple. Two stores with the same revenue can be worth very different amounts if their margins differ, so buyers anchor on what the business actually earns. Revenue multiples mainly apply to high-growth, pre-profit brands.

What buyers check

Beyond earnings, buyers look at unit economics: your AOV, the relationship between lifetime value and acquisition cost, and whether paid traffic is profitable (break-even ROAS). Strong, verified economics support a higher multiple. To see how your numbers compare, use the verified ecommerce benchmarks.

How verification changes the number

A valuation is only as trustworthy as its inputs. On TrustProfit, revenue is verified directly from Shopify or WooCommerce through MerchantFlow, while profit and margin stay self-reported until confirmed in due diligence. Verified, growing stores consistently command the top of the band. Read our methodology for exactly what is verified.

Ready to act on it?

Value your store, then list it free to get verified offers, or browse stores for sale as a buyer. When a deal closes, estimate fees with the escrow fee calculator and your take-home with the net proceeds calculator.

Frequently asked questions

How do I value my ecommerce business?

Value an ecommerce business by multiplying its trailing annual profit by a market multiple. Most established stores sell for about 2.4x to 3.8x annual profit (or SDE), so a store earning $120,000 a year in profit is typically worth roughly $288,000 to $456,000. Verified revenue, steady growth, and clean books push toward the high end.

How much is my Shopify store worth?

A Shopify store is generally worth about 2.4x to 3.8x its trailing annual profit. A store profiting $5,000 a month — $60,000 a year — is therefore typically worth about $144,000 to $228,000. Recurring revenue, low owner involvement, diversified traffic, and verified growth raise the multiple.

What multiple do ecommerce stores sell for?

Most small-to-mid ecommerce stores sell for a profit multiple of about 2.4x to 3.8x trailing annual profit (equivalently, an SDE multiple). Larger businesses, roughly $5M and up, are valued on EBITDA multiples instead. TrustProfit shows each listed store's actual asking multiple so you can compare.

How is the estimated fair valuation range calculated?

TrustProfit applies a profit-multiple band — currently about 2.4x to 3.8x of trailing annual profit — to produce the low-to-high estimated fair range shown on each listed store. It is an automated estimate to frame negotiations, not a formal appraisal.

Is profit or revenue used to value a store?

Profit, not revenue, drives most ecommerce valuations. Two stores with identical revenue can be worth very different amounts if their margins differ, so buyers price on trailing annual profit or SDE. Pure revenue multiples are mainly used for high-growth, pre-profit brands.

What's the difference between verified and self-reported metrics?

Live metrics (revenue, orders, AOV, and month-over-month change) come straight from Shopify or WooCommerce via MerchantFlow and carry the verified badge. Profit and margin are self-reported: they depend on the seller having connected all of their COGS, shipping, advertising, and fee data, so confirm them during due diligence.