EBITDA Multiple Valuation Calculator
Enterprise value is not what the seller receives.
Valuation multiples vary widely with market conditions, buyer type and the quality of the business. These are planning estimates, a broker's valuation and a completed sale are different things again.
Equity value
$952,000
$990,000 enterprise value
Enterprise value is what the business is worth; equity value is what the seller receives. The gap is debt and cash, and the working capital adjustment: usually a normalised level of stock and receivables. Is the item most often disputed at completion.
How the EBITDA Multiple Valuation Calculator works
Enterprise value is what the business is worth; equity value is what the seller receives. The gap is debt and cash, and the working capital adjustment, a normalised level of stock and receivables; is the item most often disputed at completion.
Also known as: EBITDA multiple calculator · enterprise value from EBITDA · earnings multiple valuation
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price, check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
What is the difference between enterprise and equity value?
Enterprise value is the business itself. Equity value subtracts debt and adds cash, giving what the shareholders actually receive.
What is a working capital adjustment?
A settlement at completion for stock and receivables above or below an agreed normal level. It prevents a seller from running down stock before a sale to extract cash.
What EBITDA multiple should I expect?
It varies enormously with size, sector and growth. Larger businesses attract higher multiples than small ones for the same earnings quality, which is why bolt-on acquisitions work.
Why do larger businesses get higher multiples?
Less key-person risk, better processes, more buyers able to transact, and access to different financing. The gap between a £200,000 and a £2m EBITDA business is often several turns.