What Is an EBITDA Multiple Valuation Calculator?

An EBITDA multiple valuation is the standard way buyers, sellers, and advisors price a private business. It starts with the company's EBITDA — a proxy for operating cash generation — and applies a multiple derived from comparable sales in the same industry. The result is enterprise value; subtracting net debt converts it into the equity value an owner would actually receive.

How It Works

Enterprise value equals EBITDA times the multiple. Net debt is total debt minus cash on hand, and equity value is enterprise value minus net debt. The donut chart shows how enterprise value splits between equity and debt, and the breakdown table walks every step so the headline figure can be verified line by line.

Understanding Your Results

The primary number is equity value — what the owner walks away with. The three-stat bar shows enterprise value, the multiple applied, and net debt. Run several multiples (for example 4x, 6x, and 8x) to build a valuation range, and adjust cash and debt to reflect the balance sheet as of the valuation date. The summary block mirrors the breakdown table exactly, so the numbers always reconcile.