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Business Enterprise Value Calculator

Estimate your business value using EBITDA multiples, revenue multiples, P/E multiples, or discounted cash flow (DCF). Shows enterprise value, equity value (what shareholders receive), net debt, and a valuation range. Sector benchmarks included.

Enterprise Value Calculator

Calculate EV, equity value, and key valuation ratios using multiples or DCF.

Financial data

Gross margin: 70.0%

EBITDA margin: 20.0%

Used for P/E method and for reference ratios

All interest-bearing debt (bank loans, bonds, finance leases)

Cash and short-term liquid assets — deducted from debt to get net debt

Valuation method

Financial Profile

Gross margin70.0%
EBITDA margin20.0%
Net debt (debt − cash)£300,000

Valuation (EBITDA Multiple)

Enterprise Value (EV)£6,500,000
EV range (low)£5,000,000
EV range (high)£8,000,000
Equity value (EV − net debt)£6,200,000
Equity range (low)£4,700,000
Equity range (high)£7,700,000

Valuation Ratios

EV / Revenue1.3x
EV / EBITDA6.5x
P/E (implied)8.9x

Equity value is what shareholders would receive on a sale after repaying net debt. Valuation range is ±1 multiple turn (or ±20% for DCF). These are indicative estimates — a formal valuation requires a qualified corporate finance adviser.

5 Business Valuation Planning Tips

  1. Buyers pay for maintainable EBITDA: Remove one-off costs, owner perks, and non-recurring items to present a clean, normalised EBITDA figure. Buyers will scrutinise your management accounts — unexplained adjustments reduce credibility and the price.
  2. Agree the working capital peg early:In any M&A transaction, the parties must agree what level of working capital is "normal" for the business. If actual working capital at completion differs from the peg, the price adjusts pound-for-pound. Get this number right.
  3. Earnouts bridge valuation gaps: If the buyer and seller disagree on value, an earnout defers part of the price (typically 20–30% of deal value) subject to future performance. Useful but complex — ensure KPIs are measurable, buyer-controllable, and time-limited.
  4. Get an independent valuation before any transaction: Whether fundraising, selling, or buying out a partner, an independent valuation from a qualified corporate finance adviser establishes a defensible starting point and strengthens your negotiating position.
  5. Structure the deal for BADR: If you qualify for Business Asset Disposal Relief, CGT is just 10% on the first £1 million of gains. Check your eligibility well before exit — conditions include 5% shareholding, employee/director status for 2 years, and qualifying company. Deal structure (share sale vs asset sale) affects whether BADR applies.

EV vs Equity Value

Enterprise Value (EV) represents the total cost to acquire a business — including its debt. Equity Value is what shareholders actually receive: EV minus net debt (debt minus cash). In M&A, the headline price is usually agreed on an EV basis, then a "locked-box" or "completion accounts" mechanism adjusts for actual cash, debt, and working capital at completion.

Common Valuation Methods

  • EBITDA multiple: Most common for SME transactions. Applies a sector multiple to normalised EBITDA.
  • Revenue multiple: Used when EBITDA is negative or volatile — common for SaaS and high-growth companies.
  • P/E multiple: Earnings-based — common for stable, asset-light businesses.
  • DCF: Intrinsic value based on projected cash flows. Sensitive to growth and discount rate assumptions.