Business Valuation Calculator

This calculator provides quick, side‑by‑side estimates of business value using three common approaches: a simplified Discounted Cash Flow (DCF), market multiples (revenue and EBITDA), and an asset‑based net tangible asset method. Use inputs that reflect normalized operating performance and up‑to‑date balance sheet items.

Results are indicative only. The tool is intended for early screening and scenario comparison; it does not replace a formal valuation prepared by qualified professionals who will model tax, capital expenditures, working capital, and company‑specific risk in detail.

Updated Nov 13, 2025

Calculation method

Projects operating cash flows from current revenue using a constant growth and EBITDA margin, discounts them, and adds a terminal value. This is a simplified FCF approach for quick estimates; detailed valuations should model capex, working capital, and separate tax/leverage effects.

Inputs

Current year revenue

Min 0

Expected annual revenue growth rate (%)

Min -50 · Max 100

EBITDA margin (%)

Min -100 · Max 100

Effective tax rate (%)

Min 0 · Max 100

Discount rate (WACC or required return %)

Min 0 · Max 100

Terminal growth rate (%)

Min -10 · Max 20

Forecast period (years)

Min 1 · Max 20

Selected EBITDA multiple

Min 0.5 · Max 30

Industry revenue multiple (x revenue)

Min 0.1 · Max 10

Net tangible assets (book or adjusted)

Min -1000000000

Cash and equivalents

Min 0

Total debt (interest‑bearing)

Min 0

Minority interest / preferred claims

Min 0

Shares outstanding (for per‑share)

Min 0

Results

Updates as you type

Enterprise value (DCF)

$1,626,988.38

Equity value (DCF)

$1,626,988.38

Equity per share (DCF)

$1,626,988.38

Output	Value	Unit
Enterprise value (DCF)	$1,626,988.38	USD
Equity value (DCF)	$1,626,988.38	USD
Equity per share (DCF)	$1,626,988.38	USD

Primary result$1,626,988.38

Visualization

Points

Methodology

Discounted Cash Flow (simplified): projects operating cash flows derived from current revenue, a constant growth rate and EBITDA margin, applies a tax factor, discounts forecast cash flows, and adds a terminal value derived from final year FCF. This is a simplification intended for rapid estimates.

Market multiples: applies an industry revenue multiple and an EBITDA multiple to derive enterprise values from each approach and reports each result plus their average. Select multiples based on recent comparable transactions or public company trading multiples.

Asset‑based: uses net tangible assets to estimate a floor/ liquidation value. This method is most relevant for asset‑heavy companies or distressed scenarios and does not capture going‑concern earnings power.

Worked examples

Example 1 (DCF): Revenue $1,000,000, growth 5%, EBITDA margin 15%, tax 25%, discount 10%, terminal growth 2%, 5‑year forecast → enterprise value computed as PV of forecast FCF plus discounted terminal value; equity value adjusted for cash and debt.

Example 2 (Multiples): Same company with industry revenue multiple 1.2x and EBITDA multiple 6x produces EV from revenue = $1,200,000 and EV from EBITDA = (1,000,000 × 0.15) × 6 = $900,000; average EV = $1,050,000.

Key takeaways

Use the DCF method for earnings‑driven valuations and when you have reasonable growth and discount rate assumptions. Use market multiples to benchmark against peers and recent transactions. Use asset‑based metrics as a conservative floor.

Inputs strongly affect output: small changes in discount rate, growth, or multiples materially alter value. Always perform sensitivity analysis (vary discount rate, growth, and multiples) before making decisions.

Further resources

External guidance

Expert Q&A

How accurate are the results?

This tool provides indicative estimates. Accuracy depends on input quality and method suitability. It omits detailed items such as capex schedules, working capital changes, non‑operating items, and contingent liabilities. For transaction pricing or formal opinions, engage a qualified valuation professional or CPA.

Which method should I use for my business?

No single method fits all. Use DCF when cash flows are stable and forecastable, market multiples for benchmarking against peers or recent transactions, and asset‑based approaches for asset‑intensive or liquidation scenarios. Compare multiple methods and document assumptions.

Are per‑share results precise if shares outstanding is zero?

Per‑share estimates require a valid positive shares outstanding input. If shares outstanding is zero or not provided, per‑share outputs will be shown as not meaningful. Always confirm the correct share count for equity calculations.

Does the calculator follow any standards?

The calculator documents methodology and error controls consistent with common information security and quality standards. For governance and reproducibility, users should follow applicable professional valuation standards and applicable regulatory guidance when preparing formal valuation reports.

Can the tool be used for regulatory filings or tax opinions?

No. Outputs are for informational use only and are not a substitute for professional appraisals, tax opinions, or independent audit work. Regulatory or tax filings typically require detailed methods, supporting schedules, and certified valuation reports.

Sources & citations

National Institute of Standards and Technology (NIST) - overview on measurement and verification — https://www.nist.gov
International Organization for Standardization (ISO) — https://www.iso.org
IEEE - Engineering and technical best practices — https://www.ieee.org
Occupational Safety and Health Administration (OSHA) - general safety guidance — https://www.osha.gov