Valuation multiple calculator
What enterprise value and equity residual follow from your selected annual metric and multiple?
A teaching example in the units shown below.
These authored example inputs illustrate the calculation. Replace them with your own documented amounts, periods and rates; they are not measured industry averages or available offers.
Use an enterprise multiple for the same metric and business scope. No price-to-earnings multiple is used.
A positive metric is required for the illustrative multiple calculation.
Your selected positive multiple. The tool supplies no observed or recommended market multiple.
Debt to subtract in this simplified enterprise-to-equity bridge.
Cash outside the operating assets represented by enterprise value.
Your entered scenario
Starting exampleCalculation updated using the entered assumptions.
Formula and interpretation
Illustrative enterprise value = positive annual metric × selected enterprise multiple
Net debt = debt − excess cash
Illustrative equity residual = enterprise value − net debt
Match revenue, EBITDA or EBIT to the same enterprise-multiple definition. A price-to-earnings multiple has a different numerator.
A negative equity residual remains visible. It does not establish a negative share price or personal liability.
Definitions and sources
These references support the definitions and calculation boundaries. The starting numerical example is authored for arithmetic; each available business preset has its own evidence and limitations.
- Enterprise and equity valuation definitions — Aswath Damodaran, NYU Stern. Page 16 supports matching enterprise-value multiples and the debt/cash distinction; no market multiple is copied. Accessed September 5, 2026.
Continue with a related calculation
Connect the calculation to a complete operating plan
Review startup uses, staffing, annual results and input evidence alongside the relevant worksheets. A single calculation does not replace local quotes or a dated cash schedule.
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