Skip to main content
Business & Accounting

Business Valuation Estimation Calculator

Estimate a business’s value with revenue and EBITDA multiples and a five-year discounted cash flow, showing a range and equity value.

Your inputs

Use multiples from comparable sales in your industry.

Results

Midpoint enterprise value (average of methods)

$2,760,321.43

Revenue multiple method
$3,000,000.00
EBITDA multiple method
$2,400,000.00
Discounted cash flow method
$2,880,964.28
Low end of range
$2,400,000.00
High end of range
$3,000,000.00
Midpoint equity value (after net debt)
$2,460,321.43

≈Estimate based on the stated model and assumptions

Notes for this result

  • Valuations depend heavily on the multiples and rates chosen. This is an educational estimate, not a professional appraisal.

What this calculator does

No single valuation method is definitive, so analysts triangulate. This tool combines two market-multiple methods with a simple DCF and shows the range.

Formula and method

Revenue method = revenue × multiple; EBITDA method = EBITDA × multiple DCF = Σ_{t=1..5} FCF₀(1 + g)^t ÷ (1 + d)^t + [FCF₅ × (1 + g_T) ÷ (d − g_T)] ÷ (1 + d)^5 Equity ≈ enterprise value − net debt

Worked example

Calculated by this tool with its default inputs:

Inputs

  • Annual revenue: 2000000 (any currency)
  • Revenue multiple: 1.5
  • Annual EBITDA: 400000 (any currency)
  • EBITDA multiple: 6
  • Current annual free cash flow (for DCF): 250000 (any currency)
  • FCF growth for the next 5 years: 5 %
  • Discount rate: 12 %
  • Long-term growth after year 5: 2 %
  • Net debt (debt − cash): 300000 (any currency)

Results

  • Midpoint enterprise value (average of methods): 2,760,321.43
  • Revenue multiple method: 3,000,000
  • EBITDA multiple method: 2,400,000
  • Discounted cash flow method: 2,880,964.28
  • Low end of range: 2,400,000
  • High end of range: 3,000,000

How to read the results

A wide range means the methods disagree — examine which assumptions drive the gap.

Assumptions and limitations

  • Multiples must come from genuinely comparable transactions.
  • Educational estimate only, not a professional valuation.

Financial results are estimates based on the inputs and assumptions shown. They are not financial advice; confirm figures with your lender, provider or a qualified adviser before making decisions.

Questions

Why must the discount rate exceed long-term growth?

The terminal value formula divides by (d − g); if growth equals or exceeds the discount rate the value becomes infinite or negative.

Methodology and verification

Result type
Estimate based on the stated model and assumptions
Formula version
1.0
Automated verification
2 reference and validation test cases, checked against independently computed values. The site cannot be built if any of them fail.
Editorial review
Awaiting human editorial review. The explanation was drafted with AI assistance; the formula and examples are verified by the automated tests above.

Privacy

Everything you enter is calculated in this browser and is not sent to Numerith or anyone else. Inputs are added to a share link only if you choose to include them. Privacy policy