Business Valuation Calculator
Estimate a business valuation using earnings, EBITDA, or revenue multiples based on your financial inputs.
Overview
This business valuation calculator helps you estimate what a business may be worth using common valuation multiples. Enter annual revenue, EBITDA, net profit, a chosen multiple, and any debt or cash to compare simple revenue, earnings, and EBITDA-based values.
How it works
The calculator applies a valuation multiple to a financial metric such as revenue, EBITDA, or earnings. For revenue and EBITDA methods, it estimates enterprise value first, then subtracts net debt, which is debt minus cash, to estimate equity value. For the earnings method, it treats the multiple as a direct estimate of equity value. The result is a quick benchmark, not a full appraisal.
How to use this calculator
- 1Choose the valuation method you want to focus on.
- 2Enter the business's annual revenue, EBITDA, and net profit.
- 3Add the valuation multiple you want to apply.
- 4Enter interest-bearing debt and cash balances.
- 5Review the estimated values and compare the different methods.
Example Calculation
Valuation method
ebitda
Annual revenue
$1,000,000
Annual EBITDA
$180,000
Annual net profit
$120,000
Valuation multiple
4
Interest-bearing debt
$50,000
Cash and cash equivalents
$20,000
EBITDA method value
$690,000
With a 4x multiple, EBITDA of $180,000 gives an enterprise value of about $720,000. After net debt of $30,000, the estimated equity value is about $690,000.
Frequently asked questions
What does this business valuation calculator estimate?
It estimates a possible business value using simple revenue, EBITDA, or earnings multiples and adjusts for debt and cash where relevant.
Which multiple should I use?
The right multiple depends on industry, size, growth, margins, customer concentration, and risk. Many users compare several multiples to see a range.
What is the difference between enterprise value and equity value?
Enterprise value reflects the value of the operating business before debt and cash. Equity value is what remains for the owner after adjusting for net debt.
Should I use EBITDA or net profit?
EBITDA is often used for established operating businesses, while net profit or seller earnings may be more common for smaller owner-managed businesses.
Why does debt reduce value?
Debt usually needs to be repaid or assumed by a buyer, so it reduces the equity value available to the owner.
Why does cash increase value?
Excess cash can add to what a buyer receives, so it can increase equity value when included in the transaction.
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Assumptions and warnings
Assumptions
- This calculator uses a simple market multiple approach and gives an estimate rather than a firm valuation.
- Revenue and EBITDA methods are treated as enterprise value methods, with net debt subtracted to estimate equity value.
- The earnings multiple method is treated as a direct equity value estimate.
- The selected multiple should reflect the business's industry, size, growth, risk, and profitability.
- Inputs are assumed to represent annual figures for a recent 12-month period.
Warnings
- This calculator provides an estimate only and is not financial advice.
- Business valuation can vary widely depending on industry, deal terms, market conditions, and financial adjustments.
- Consider professional valuation support before negotiating a sale, purchase, or investment.