Small-business finance
Business valuation range
Explore a supplied earnings-multiple range or net asset estimate, with the basis and debt adjustments stated explicitly.
Your inputs
Complete the fields for your selected method. Zero means intentionally zero, not unknown. Currency selection labels amounts; it does not convert exchange rates.
How this calculation works
earnings method: indicated operating value = adjusted annual earnings × supplied multiple; indicated equity = operating value + surplus cash - interest-bearing debt; asset method: equity = supplied fair asset values - all supplied liabilities
Illustrative valuation arithmetic, not an appraisal or recommended sale price. Supply multiples supported by your own comparable transactions or qualified advice; example multiples are not market averages. Earnings definitions such as EBITDA and seller discretionary earnings are not interchangeable. The earnings branch assumes the multiple gives cash-free, debt-free operating value; only add surplus cash excluded from that value and deduct interest-bearing debt not already reflected. Do not add cash twice in the asset branch. Asset values, earnings adjustments, transaction terms, tax, minority/control effects and forecasts are not independently verified.
What information do I need?
Use records for the same job, equipment or accounting period. Only the fields for your selected entry method are required. An unknown amount is not zero.
Input definitions and where to find them
- Valuation method: Use a measured value or an explicit assumption for the stated geometry; check the selected entry method and units.
- Adjusted annual earnings on your chosen basis (selected currency): Use a defensible adjusted annual earnings amount. Document whether it is EBITDA, seller discretionary earnings or another basis, and use multiples on that same basis. Used with: Supplied earnings multiples.
- Your lower earnings multiple (times): Supply a lower multiple from comparable transactions or qualified advice. The example is illustrative, not a market benchmark. Used with: Supplied earnings multiples.
- Your higher earnings multiple (times): Supply an upper multiple on the same earnings basis. It must be at least the lower multiple. Used with: Supplied earnings multiples.
- Surplus cash excluded from operating value (selected currency): Only surplus cash excluded from the operating value. Do not add working cash already captured by the multiple. Used with: Supplied earnings multiples.
- Interest-bearing debt to deduct from operating value (selected currency): Interest-bearing debt excluded from operating value and not deducted elsewhere. Used with: Supplied earnings multiples.
- Total supplied fair asset values including cash (selected currency): Supply fair asset values, not automatically historical book values. Include cash once and use the same valuation date as liabilities. Used with: Supplied fair asset and liability values.
- All liabilities to deduct in the asset method (selected currency): Include all liabilities not already deducted from the supplied asset total; use the same valuation date. Used with: Supplied fair asset and liability values.
Use the Where to find this value controls beside the inputs for available work-it-out helpers. Estimates remain your assumptions; a helper does not verify the source figures.
Worked example
Example amounts use US dollars (USD).
Example answer: Lower indicated equity value is $170,000.00 for the illustrative inputs below.
Example inputs
- Valuation method: Supplied earnings multiples
- Adjusted annual earnings on your chosen basis: $100,000.00
- Your lower earnings multiple: 2.00 times
- Your higher earnings multiple: 3.00 times
- Surplus cash excluded from operating value: $20,000.00
- Interest-bearing debt to deduct from operating value: $50,000.00
- Lower indicated equity value
- $170,000.00
- Higher indicated equity value
- $270,000.00
- Lower indicated operating value before adjustments
- $200,000.00
- Higher indicated operating value before adjustments
- $300,000.00
These illustrative values are not recommended rates or industry averages. Replace every example input with your own figures.
Use the result well
Explore a supplied earnings-multiple range or net asset estimate, with the basis and debt adjustments stated explicitly.
Keep inputs on the same scope and time basis. Calculations retain precision internally; displayed values generally round to two decimal places, with extra precision for very small values and whole-unit rounding where required. Economic comparisons describe your supplied assumptions and do not guarantee future results.
This tool provides business arithmetic. It does not approve engineering designs, establish legal or tax treatment, select equipment or certify safe operating conditions.