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Business Valuation Calculator

Estimate enterprise value and equity value from revenue, EBITDA margin, valuation multiple, and net debt.

Business Valuation Inputs

This scenario uses an EBITDA multiple. Actual value depends on growth, risk, cash flow, industry, and transaction terms.

Results computed instantly — your data never leaves your device.

Business Valuation Results

Real-Time

Estimated enterprise value

$1,200,000.00

Estimated EBITDA

$200,000.00

Estimated equity value

$1,100,000.00

Implied revenue multiple

1.20×

An illustrative market-multiple scenario, not a formal appraisal.

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How to Use the Business Valuation Calculator

  1. 1

    Enter annual revenue and the modeled EBITDA margin.

  2. 2

    Choose an illustrative EBITDA valuation multiple.

  3. 3

    Enter net debt to bridge from enterprise value to equity value.

  4. 4

    Review EBITDA, enterprise value, equity value, and implied revenue multiple.

Formula & Mathematical Basis

EBITDA = Revenue × EBITDA margin; Enterprise value = EBITDA × multiple; Equity value = Enterprise value − net debt

Variable Key

Revenue

Annual operating revenue

EBITDA margin

EBITDA as a percentage of revenue

Multiple

Illustrative value assigned per unit of EBITDA

Net debt

Debt less cash included in the bridge to equity value

📝 This is a scenario model using one operating metric and one multiple. It is not a formal appraisal and does not account for working capital, taxes, growth, risk, or transaction structure.

Step-by-Step Examples

1

Illustrative operating-multiple valuation

Scenario: A company reports $1,000,000 revenue, a 20% EBITDA margin, a 6× multiple, and $100,000 net debt.

  1. 1.Calculate EBITDA as $1,000,000 × 20% = $200,000.
  2. 2.Multiply $200,000 by 6 for a $1,200,000 enterprise value.
  3. 3.Subtract $100,000 net debt for a $1,100,000 equity-value estimate.
  4. 4.Compare the result with other methods and company-specific evidence.
✅ The scenario produces $200,000 EBITDA, $1,200,000 enterprise value, and $1,100,000 estimated equity value.

Practical Use Cases

  • Create a transparent first-pass valuation scenario.
  • Stress-test how margin or multiple assumptions affect value.
  • Explain the distinction between enterprise value and equity value.

Common Pitfalls

  • Treating one market multiple as universally appropriate.
  • Subtracting gross debt without considering cash when using net debt.
  • Using adjusted EBITDA without clearly documenting adjustments.

Frequently Asked Questions

Is this a sale price prediction?

No. It is an illustrative scenario based on the inputs and does not predict a transaction price.

Why subtract net debt?

A simplified enterprise-to-equity bridge subtracts debt-like obligations and adds cash; this route accepts net debt directly.

Can I value a company with negative EBITDA?

This version floors the margin at zero, so it is not designed for loss-making businesses or revenue multiples.

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