Company Valuation Calculator
Estimate business value using a blended approach: EBITDA multiple + simplified DCF.
What this company valuation calculator does
A company valuation calculator gives you a fast way to estimate what a business may be worth. This tool combines two common approaches: a market-based EBITDA multiple and a simplified discounted cash flow (DCF) model. Because each method has strengths and weaknesses, blending both can provide a more balanced estimate than relying on only one number.
The result is not a legal appraisal or investment recommendation. It is a decision-support estimate that helps founders, investors, and operators frame negotiations, set expectations, and stress-test assumptions.
How the calculator works
1) EBITDA multiple valuation
This method looks at your current operating earnings and applies a market multiple:
- EBITDA = Revenue × EBITDA Margin
- Enterprise Value (Multiple) = EBITDA × Industry Multiple
It is quick and intuitive, but heavily dependent on selecting the right multiple for your industry, growth profile, concentration risk, and company size.
2) Simplified DCF valuation
DCF projects future free cash flow and discounts it back to today using a discount rate (often WACC). This version uses:
- Revenue growth over a forecast period
- A free cash flow margin to convert revenue to cash flow
- A terminal growth rate for value beyond the projection window
DCF is powerful because it is grounded in cash generation. However, it is sensitive to assumptions, especially discount rate and terminal growth.
3) Blended valuation output
The calculator averages the EBITDA multiple enterprise value and DCF enterprise value. Then it adjusts for net debt:
- Net Debt = Debt - Cash
- Equity Value = Blended Enterprise Value - Net Debt
If shares outstanding are provided, the tool also estimates an implied value per share.
How to use it effectively
Use realistic assumptions
Small changes in growth, margins, and discount rates can move valuation dramatically. Start with conservative base-case assumptions, then run upside and downside scenarios.
Calibrate your multiple
Public-company multiples can overstate value for small private firms. Apply a private-company discount when your business has lower liquidity, customer concentration, or owner dependency.
Stress-test sensitivity
Try changing one variable at a time. For many businesses, valuation is most sensitive to:
- Discount rate (risk perception)
- Terminal growth (long-term assumptions)
- EBITDA margin durability
- Sustainable free cash flow margin
What drives a higher valuation
- Predictable recurring revenue and low churn
- Strong gross margins and operating leverage
- Diversified customer base with low concentration risk
- Clear competitive moat and pricing power
- Experienced management team with scalable processes
Important limitations
No calculator can capture every nuance. This model does not directly account for working capital swings, tax structure differences, one-time expenses, legal risk, key-person dependency, or transaction terms such as earn-outs.
For mergers, fundraising, ESOP planning, or legal reporting, use this tool as a starting point and supplement with professional advice, detailed financial modeling, and comparable transaction analysis.
Quick FAQ
Is enterprise value the same as equity value?
No. Enterprise value reflects value of operations independent of capital structure. Equity value is what remains for shareholders after adjusting for net debt and similar obligations.
What if my company is pre-profit?
If EBITDA is low or negative, revenue multiple methods or milestone-based valuation frameworks may be more practical than EBITDA multiples. DCF can still be used, but assumptions become more speculative.
How often should I update valuation?
At least quarterly for internal planning, and immediately after major changes in growth, margin profile, financing structure, or market conditions.