Updated
Using Business valuation calculator
Apply your chosen earnings multiple, then bridge enterprise value to equity value using cash and debt.
Use a consistent earnings definition and a multiple appropriate to that definition. No market multiple is supplied or recommended. This simplified scenario omits working-capital adjustments, contingent liabilities and deal terms.
A worked example
Example inputs: annual earnings metric = 100000, your selected earnings multiple = 3, cash added = 10000, debt subtracted = 40000. Multiple-based enterprise value = 300000.
Before you use the result
Use a consistent earnings definition and a multiple appropriate to that definition. No market multiple is supplied or recommended. This simplified scenario omits working-capital adjustments, contingent liabilities and deal terms.
Example results for annual earnings metric
These examples use Your selected earnings multiple: 3; Cash added: 10000; Debt subtracted: 40000. They are reference calculations, not recommended settings.
| Annual earnings metric | Multiple-based enterprise value |
|---|---|
| 50000 | 150,000.00 |
| 100000 | 300,000.00 |
| 200000 | 600,000.00 |
Cite this page
ToolOctopus. “Business valuation calculator.” Updated 2026-09-26. https://tooloctopus.com/business-valuation-calculator.
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