Business Valuation Calculator

How to use the calculator

Pick the basis, enter the matching annual figure, then the low, mid and high multiples you want to test. Add cash and debt to bridge to equity, and optionally an asking or offer price to see its implied multiple.

What the result means

With $250,000 of SDE and your multiples of 2× to 3×, enterprise value spans $500,000 to $750,000; adding $50,000 cash and subtracting $100,000 debt gives a mid equity value of $575,000. A $700,000 asking price implies 2.8× SDE, inside your range.

Formula and units

Enterprise value = your chosen earnings or revenue figure × each entered multiple (low, mid, high). Equity value = enterprise value + cash − debt. The implied multiple is the entered price ÷ the same figure. The table steps from the low to the high multiple through the midpoints.

Worked examples

$250,000 SDE at 2× to 3×: Annual SDE, EBITDA or revenue figure: 250000 $ per year; Low multiple (your assumption): 2 ×; Mid multiple (your assumption): 2.5 ×; High multiple (your assumption): 3 ×; Cash and equivalents kept with the business: 50000 $; Debt assumed or repaid from proceeds: 100000 $; Asking or offer price to compare (0 = skip): 700000 $, enterprise basis; Valuation basis: sde.
Example result: Enterprise value (mid): $625,000.00 at 2.5× SDE; Enterprise value range: $500,000.00 to $750,000.00; Equity value (mid): $575,000.00; Equity value range: $450,000.00 to $700,000.00; Implied multiple of entered price: 2.8× SDE (within your range).

$1.2M EBITDA at 4× to 6× with $2M debt: Annual SDE, EBITDA or revenue figure: 1200000 $ per year; Low multiple (your assumption): 4 ×; Mid multiple (your assumption): 5 ×; High multiple (your assumption): 6 ×; Cash and equivalents kept with the business: 300000 $; Debt assumed or repaid from proceeds: 2000000 $; Asking or offer price to compare (0 = skip): 0 $, enterprise basis; Valuation basis: ebitda.
Example result: Enterprise value (mid): $6,000,000.00 at 5× EBITDA; Enterprise value range: $4,800,000.00 to $7,200,000.00; Equity value (mid): $4,300,000.00; Equity value range: $3,100,000.00 to $5,500,000.00; Implied multiple of entered price: not calculated (enter a price and a nonzero figure).

Limitations and common mistakes

Hypothetical arithmetic only; not an appraisal, fairness opinion or offer. The calculator holds no industry multiples: every multiple is your assumption, and the result is only as good as those inputs and the earnings figure (normalized, one consistent year). Working capital adjustments, earn-outs, taxes, deal fees and asset-versus-share structure are not modeled.

Applying an EBITDA multiple to SDE (or a revenue multiple to profit) mixes bases and can overstate value badly; the multiple and the figure must describe the same measure.

Sources and assumptions

Method BUSINESS-VALUATION-1.0; last formula review 2026-11-04. Sources and their supported claims. Calculation methodology.