The method
How it is worked out
Equity = (M × x) − D + C
- M
- Yearly earnings or revenue
- x
- Chosen multiple
- D
- Debt
- C
- Spare cash
Business Valuation Calculator
Estimate an indicative business value from earnings or revenue, a chosen multiple, debt and surplus cash. The result updates as you type so you can compare scenarios quickly.
Keep in mind
What it leaves out
- Picking the multipleMultiples differ widely by sector, size and growth. This is a benchmark, not a valuation.
- Quality of earningsOne-off items and owner costs can change the real earnings figure.
- Deal termsEarn-outs, working capital and tax change what a buyer actually pays.
Use the calculator to compare scenarios rather than as a guaranteed forecast.
About the Business Valuation Calculator
Create an indicative business value from an earnings or revenue figure and a multiple you choose. It is useful when exploring sale scenarios or negotiating assumptions, provided you distinguish enterprise value from the amount a shareholder could receive after debt and surplus cash.
How it works and an example to tryShow less
How to use the result
Multiply the selected annual metric by the chosen multiple to obtain enterprise value, then deduct debt and add spare cash for an indicative equity value. The calculator does not source a market multiple or verify EBITDA, revenue quality, working capital, obligations or buyer terms. Choose a multiple appropriate to the actual business and treat the result as a scenario, not an appraisal.
Example to try
For a local services firm, enter its annual earnings and a three-times multiple. Then add outstanding debt to see why the shareholder value falls below enterprise value. Try a revenue multiple only after considering whether revenue-based comparisons suit that industry.
Put it to work
Try it on a real situation
Load an example
What moves the result most
Worked out from your figures above. Tap a row to try it.
Who uses it, and when
Owners thinking about a sale or succession, buyers checking whether an asking price is in the right range, and advisers who need a defensible starting point before detailed due diligence.
Mistakes worth avoiding
- Applying a technology-company multiple to a local services business.
- Confusing enterprise value with what the shareholders will actually receive after debt.
- Using headline revenue when earnings quality is poor or heavily adjusted.
Questions
What does the Business Valuation Calculator do?
Estimate an indicative business value from earnings or revenue, a chosen multiple, debt and surplus cash.
How should I use the result?
Multiply the selected annual metric by the chosen multiple to obtain enterprise value, then deduct debt and add spare cash for an indicative equity value. The calculator does not source a market multiple or verify EBITDA, revenue quality, working capital, obligations or buyer terms. Choose a multiple appropriate to the actual business and treat the result as a scenario, not an appraisal.
Does TechBullion store the information I enter?
The core calculation or transformation runs in your browser. Normal website security and analytics may still record page-level events, but the tool does not need to create a public record from your inputs.
What mistakes do people make with a business valuation calculator?
Applying a technology-company multiple to a local services business. Confusing enterprise value with what the shareholders will actually receive after debt. Using headline revenue when earnings quality is poor or heavily adjusted.
Is the result guaranteed?
No. Use the result as a practical check or planning aid and verify important decisions with the relevant primary source, provider or professional advice.
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Calculator results are estimates based on the figures entered and are not financial, investment, legal or tax advice.