Use this calculator to estimate business valuation calculator from your own assumptions. The calculation runs locally in your browser, and the formula, example, scope, and source are visible below.
How to use this calculator
- Valuation metric type (SDE / EBITDA / revenue): enter the value for the same scenario and period as the other inputs.
- Metric amount: enter the value for the same scenario and period as the other inputs.
- Low/base/high multiple (user-entered or dated source): enter the value for the same scenario and period as the other inputs.
- Cash: enter the value for the same scenario and period as the other inputs.
- Debt: enter the value for the same scenario and period as the other inputs.
- Optional non-operating adjustments: enter the value for the same scenario and period as the other inputs.
- Replace the example values with values from one consistent scenario.
- Select Calculate and review the primary and supporting results.
- Change one assumption at a time when comparing scenarios, then verify material decisions against the governing source or a qualified professional.
Formula and method
EV_low/base/high = metric * multiple_low/base/high
Equity_value = EV + cash - debt + other_adjustments
The implementation uses the audited A15 — Valuation method. Intermediate values retain calculation precision; the interface formats values only for display unless the formula itself specifies a rounding rule.
Worked example
Inputs: SDE=$500,000; Multiples=2.5x/3.0x/3.5x; Cash=$100,000; Debt=$300,000
Result: EV=$1.25M/$1.50M/$1.75M; Equity=$1.05M/$1.30M/$1.55M
This is the baseline audited scenario used to check that the page, formula, and displayed result remain aligned.
How to interpret the result
The calculator reports Enterprise value range; equity value range. Treat the output as a scenario estimate: it changes when the entered scope, time period, fee basis, or cost definition changes. It does not establish a universal benchmark or guarantee a business outcome.
Assumptions and limitations
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Rename/explain as a multiple-based valuation scenario estimator. IRS Rev. Rul. 59-60 states no general valuation formula applies across closely held businesses.
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all relevant factors must be considered. Multiples must be user-selected or sourced and date-stamped. Result is not an appraisal.
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Results are informational planning estimates, not accounting, tax, legal, employment, valuation, or investment advice.
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Values are processed in the browser and are not submitted to an application server.
Common mistakes
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Negative earnings.
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mismatched metric/multiple.
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estimate not appraisal.
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Rename/explain as a multiple-based valuation scenario estimator. IRS Rev. Rul. 59-60 states no general valuation formula applies across closely held businesses.
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all relevant factors must be considered. Multiples must be user-selected or sourced and date-stamped. Result is not an appraisal.
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Rounding intermediate values before completing the formula can change the final result.
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A worked example is not a default recommendation; replace every assumption that does not match your case.
Frequently asked questions
Which metric should I use: SDE, EBITDA or revenue?
For business valuation calculator, keep the input definitions consistent and review these boundary conditions: Negative earnings; mismatched metric/multiple; estimate not appraisal.
Where should the valuation multiple come from?
For business valuation calculator, keep the input definitions consistent and review these boundary conditions: Negative earnings; mismatched metric/multiple; estimate not appraisal.
Why can two valuation methods give different answers?
For business valuation calculator, keep the input definitions consistent and review these boundary conditions: Negative earnings; mismatched metric/multiple; estimate not appraisal.
Is this calculator a formal business appraisal?
For business valuation calculator, keep the input definitions consistent and review these boundary conditions: Negative earnings; mismatched metric/multiple; estimate not appraisal.
How this calculator was created and tested
- Formula basis: the public formula is generated from the audited implementation specification for this calculator, not inferred from a search snippet or an AI answer.
- Validation coverage: 2 of 2 release test vectors are marked Audited for this calculator. The suite covers a normal scenario plus boundary or invalid-input behavior where defined.
- Regression behavior: build checks compare expected outputs, validation states, route integrity, structured data, internal links, and release blockers before publication.
- Automation and AI: automation or AI may assist drafting, organization, and regression work, but it is not treated as an authoritative source and does not override the audited formula, official rate registry, or release blockers.
- Editorial responsibility: MIASIN S.R.O. controls publication, source policy, corrections, and release decisions. No named individual expert review is claimed unless a page explicitly identifies one.
Read the full Methodology, Editorial Standards, and Corrections Policy.
Sources and freshness
Sources are ordered by authority: government or official sources first, then first-party platform sources, educational references, and finally supporting industry references.
- Government / official source: Internal Revenue Service
- Government / official source: Internal Revenue Service
- Educational reference: OpenStax
Last reviewed: September 22, 2026
Source set reviewed: September 22, 2026
Next scheduled review: September 22, 2027
Review cadence: Annual; multiples require dated source