Business Valuation Calculator
Results are estimates based on the values you enter. Recheck your inputs and assumptions before using the output for decisions.
Estimate business value from EBITDA, valuation multiple, cash, and debt to see both enterprise value and equity value.
Business Valuation Calculator
Free online business valuation calculator to estimate the value of a business using EBITDA, a valuation multiple, cash on hand, and outstanding debt. This calculator is useful for business owners, startup founders, buyers, investors, accountants, and advisors who want a quick way to estimate enterprise value and equity value. It is especially helpful during acquisition discussions, sale planning, fundraising, succession planning, and internal strategy reviews where a fast valuation range is needed.
The calculator works with an earnings-based multiple method. First, it estimates enterprise value by multiplying annual EBITDA by the selected valuation multiple. Then it adjusts for cash and debt to estimate equity value. Enterprise value reflects the value of the overall operating business before capital structure adjustments. Equity value reflects what may remain for owners after debt and cash are considered. This makes the calculator useful when comparing businesses with different leverage positions or when checking whether debt materially changes owner value.
The formula of business valuation
Enterprise value = Annual EBITDA x Valuation multiple
Net debt = Outstanding debt – Cash on hand
Equity value = Enterprise value – Net debt
Cash-adjusted multiple = Equity value / Annual EBITDA
Here annual EBITDA means earnings before interest, taxes, depreciation, and amortization for one year, valuation multiple means the market multiple or industry multiple applied to that EBITDA, cash on hand means liquid cash currently available in the business, and outstanding debt means the business debt that a buyer or owner would need to consider in the transaction structure.
Solved Example
Example 1: Find the business valuation if annual EBITDA is $250,000, valuation multiple is 4.5, cash on hand is $50,000, and outstanding debt is $120,000.
Solve: Enterprise value = 250000 x 4.5 = $1,125,000
Net debt = 120000 – 50000 = $70,000
Equity value = 1125000 – 70000 = $1,055,000
Cash-adjusted multiple = 1055000 / 250000 = 4.22
Example 2: Find the result if annual EBITDA is $400,000, valuation multiple is 5, cash on hand is $80,000, and debt is $300,000.
Solve: Enterprise value = 400000 x 5 = $2,000,000
Net debt = 300000 – 80000 = $220,000
Equity value = 2000000 – 220000 = $1,780,000
Cash-adjusted multiple = 1780000 / 400000 = 4.45
Example 3: Find the result if annual EBITDA is $150,000, valuation multiple is 3.8, cash on hand is $20,000, and debt is $40,000.
Solve: Enterprise value = 150000 x 3.8 = $570,000
Net debt = 40000 – 20000 = $20,000
Equity value = 570000 – 20000 = $550,000
Cash-adjusted multiple = 550000 / 150000 = 3.67
Table of business valuation calculator
| EBITDA | Multiple | Enterprise Value | Net Debt | Equity Value |
|---|---|---|---|---|
| $150,000 | 3.8 | $570,000 | $20,000 | $550,000 |
| $250,000 | 4.5 | $1,125,000 | $70,000 | $1,055,000 |
| $400,000 | 5.0 | $2,000,000 | $220,000 | $1,780,000 |
| $600,000 | 6.0 | $3,600,000 | $350,000 | $3,250,000 |
How to use this business valuation calculator
Enter annual EBITDA in the proper input field. After that, enter the valuation multiple you want to use based on market comps, industry norms, or a target transaction scenario. Then enter cash on hand and outstanding debt. Finally, click the calculate button. The calculator will show enterprise value, net debt, equity value, and the cash-adjusted multiple in the result box.
This calculator is useful when estimating a likely business value before a sale, purchase, or investment discussion. If the valuation multiple rises, enterprise value rises as well. If outstanding debt is high, equity value can fall even if enterprise value looks strong. If the business has strong cash reserves, equity value can improve because cash reduces net debt. These relationships make the calculator a practical first-pass tool for valuation thinking.
When using the result, remember that business valuation is never based on one formula alone. Real valuations may also consider revenue multiples, discounted cash flow, industry risk, customer concentration, growth profile, and asset quality. Even so, the EBITDA multiple approach remains one of the most common quick methods for small and mid-sized businesses. This calculator gives a fast numerical view that supports negotiations, planning, and financial analysis.