Business Valuation via EBITDA Multiple Calculator
"Estimate your company's fair market value using EBITDA and industry-standard valuation multiples."
A company's EBITDA multiple is one of the most common methods used to determine its market value. This tool helps you estimate your business's valuation range based on your EBITDA and an industry multiple. Perfect for small business owners, investors, and valuation consultants seeking a quick, data-backed valuation approach.
Company's Earnings Before Interest, Taxes, Depreciation & Amortization
Typical EBITDA multiple for your sector
Business debt (optional)
Current cash reserves
Understanding EBITDA Valuation
Learn the fundamentals of business valuation using EBITDA multiples and make informed decisions about your company's worth.
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) measures a company's core profitability before non-operating expenses. It provides a clearer view of operational performance by excluding:
- •Interest: Financing costs that vary by capital structure
- •Taxes: Tax rates that differ by jurisdiction
- •Depreciation: Non-cash accounting charges
- •Amortization: Intangible asset write-offs
Why it matters: EBITDA allows for apples-to-apples comparisons between companies with different tax situations, capital structures, and accounting practices.
The EBITDA multiple represents how many times a buyer is willing to pay for a company's EBITDA. For example, a 5x multiple means the business is valued at 5 times its EBITDA.
Factors Influencing Multiples:
- • Industry growth prospects
- • Company size and scale
- • Market position and competitive advantages
- • Customer concentration and recurring revenue
- • Management team quality
- • Economic conditions
Typical Range: Most established businesses trade between 3x-8x EBITDA, with high-growth tech companies often achieving 8x-15x+ multiples.
Enterprise Value (EV)
EV = EBITDA × Multiple
Enterprise Value represents the total value of the business, including both debt and equity.
Equity Value
Equity Value = EV - Debt + Cash
Equity Value represents what shareholders actually receive after debt is paid and cash is added.
Example Calculation
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