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Calculate business value online with our Business Valuation calculator using DCF, EBITDA multiples, assets, liabilities, debt, cash, WACC, and growth rate.
| Formula | Method | Notes |
|---|---|---|
| FCFF = EBIT×(1−Tax) + Dep − CapEx − ΔNWC | DCF | Free cash flow to the firm, per forecast year |
| TV = FCFF(n+1) ÷ (WACC − g) | DCF | Perpetual-growth terminal value; g must be < WACC |
| EV = Σ PV(FCFFt) + PV(TV) | DCF | Sum of discounted forecast cash flows and discounted terminal value |
| EV = EBITDA × EV/EBITDA Multiple | Market Multiple | Comparable-company approach |
| Equity Value = EV − Debt + Cash | DCF / Market Multiple | Bridges Enterprise Value to shareholder value |
| Net Asset Value = Assets − Liabilities | Asset-Based | Uses fair market value, not book value |
A Business Valuation calculator helps estimate how much a business may be worth based on its financial performance, future cash flow, assets, or market value. We developed this calculator so users can easily calculate Business Valuation without doing complex calculations by hand.
Business valuation is useful for business owners, buyers, investors, partners, and financial planning. A good valuation can help you understand enterprise value, equity value, discounted cash flow (DCF), EBITDA multiples, and net asset value.
This calculator focuses on the core calculations used in common business valuation methods.
The main Business Valuation Formula uses the discounted cash flow method:
Business Value = Present Value of Future FCFF + Present Value of Terminal Value
FCFF = EBIT × (1 − Tax Rate) + Depreciation − Capital Expenditure − Change in Net Working Capital
The terminal value formula is:
Terminal Value = FCFF in Next Year ÷ (WACC − Growth Rate)
FCFF in Next Year = Final Year FCFF × (1 + Growth Rate)
For a market multiple approach:
Enterprise Value = EBITDA × EV/EBITDA Multiple
To calculate equity value:
Equity Value = Enterprise Value − Debt + Cash
An asset-based valuation can use:
Asset-Based Value = Fair Value of Assets − Fair Value of Liabilities
These formulas help estimate business worth from different financial perspectives.
Enter the required business figures, such as FCFF, EBIT, depreciation, capital expenditure, and change in net working capital, depending on the selected valuation method.
Provide the number of years used to estimate future business cash flows. A longer forecast period can include more future cash flow in the valuation.
Enter the Weighted Average Cost of Capital (WACC) and expected long-term growth rate when using the DCF method. The growth rate must be lower than WACC for the standard perpetual growth formula.
If using another valuation approach, enter EBITDA and the EV/EBITDA multiple, or enter the fair value of assets and liabilities.
Click the calculate button. The calculator processes the information and shows the estimated business value. It can also show supporting figures such as enterprise value and equity value.
Suppose a business has three years of projected FCFF:
Year 1 FCFF = $100,000
Year 2 FCFF = $110,000
Year 3 FCFF = $120,000
WACC = 10%
Long-term growth rate = 3%
First, calculate the next year's FCFF:
FCFF Year 4 = $120,000 × 1.03 = $123,600
Next, calculate terminal value:
Terminal Value = $123,600 ÷ (0.10 − 0.03)
Terminal Value = $1,765,714.29
Now discount the future cash flows and terminal value at 10%.
Present Value of Year 1 = $100,000 ÷ 1.10 = $90,909.09
Present Value of Year 2 = $110,000 ÷ 1.10² = $90,909.09
Present Value of Year 3 = $120,000 ÷ 1.10³ = $90,157.78
Present Value of Terminal Value = $1,765,714.29 ÷ 1.10³ = $1,326,446.90
Therefore:
Business Value = $90,909.09 + $90,909.09 + $90,157.78 + $1,326,446.90
Business Value ≈ $1,598,423
This is an estimated enterprise value based on the given DCF assumptions.
A Business Valuation calculator provides a fast way to estimate business worth using important financial valuation methods. The DCF method focuses on future cash flow, while market multiples compare a business with similar companies. The asset approach focuses on assets and liabilities.
The final valuation depends heavily on the financial data, discount rate, growth assumptions, market multiple, debt, and cash used in the calculation. Therefore, the calculator provides an estimate rather than a guaranteed selling price.
A Business Valuation calculator estimates the value of a business using financial information such as cash flow, EBITDA, assets, liabilities, debt, cash, WACC, and growth rate.
One common approach is the DCF method, which calculates the present value of expected future free cash flow and terminal value.
EBITDA means Earnings Before Interest, Taxes, Depreciation, and Amortization. It is often used with an EV/EBITDA multiple to estimate enterprise value.
Enterprise value represents the value of the operating business before considering the owner's financing claim. Equity value can be calculated as enterprise value minus debt plus cash.
Yes. An online Business Valuation calculator can provide a quick estimate when you have reliable financial data and reasonable valuation assumptions.
No. A calculated business value is an estimate based on a valuation method. The actual selling price can depend on negotiations, market conditions, financing, buyer interest, and other factors.