Seller’s Discretionary Earnings (SDE) is a crucial metric in valuing small and medium-sized businesses. By adjusting for owner-specific decisions and discretionary expenses, SDE provides a standardised measure of profitability, offering a more comparable view than other profit measures.
If you’re unsure how to calculate SDE for your business, our easy-to-use SDE calculator is here to help. It guides you through each potential add-back step, ensuring you arrive at the correct SDE value with confidence.
Grab your latest set of financial statements and get calculating!
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Adjusted Owner’s Remuneration $0
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Result
Net Profit $0.00
+ Taxes $0.00
+ Depreciation $0.00
+ Net Interest $0.00
+ Working Owner’s Remuneration $0.00
+ Non-Recurring Expenses $0.00
+ Discretionary Expenses $0.00
Seller’s Discretionary Earnings (SDE) $0.00
For more information on the importance of calculating SDE correctly, read our article explaining the role of SDE in the valuation.