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It's a hardware product, so profit is much lower than revenue. SaaS businesses can often sell as a multiple of revenue because they have relatively low costs, but with hardware, there's a lot of overhead.

> Sale price: $598,000 (2.4x annual earnings)

Also confused here, the math doesn’t seem to be mathing up

Revenue is $1m. Earnings are less than revenue, because you have to pay for salaries & stuff to generate the $1m in revenue. After expenses of ~$750k, the business earned roughly $250k in profit. Thats' real money the owner(s) could put into their personal accounts.

Businesses are typically valued as a multiple of their earnings (in the stock market, this is the P/E ratio). For hardware/e-commerce companies, 2.4x is in the range of fair value.

Again, you multiply by the earnings and not the revenue. That gives you the actual sale price.

Revenue, not profit.