Business Valuation Scenario Calculator

Use annual operating cash flow before debt service, available to both debt and equity providers, and a compatible enterprise-value multiple. Net debt equals debt minus excess cash; enter a negative amount for net cash.

Enter all amounts in one currency. Currency selection changes labels, not amounts or jurisdiction. No conversion is performed.

Range: 0–1,000,000,000
Range: 0–100
Range: -1,000,000,000–1,000,000,000

Enter your values to see an estimate. Enter 0 for amounts that do not apply.

How this calculator works

Scenario enterprise value equals annual cash flow before debt service multiplied by a compatible user-selected enterprise-value multiple. Do not use equity cash flow after financing or an owner-earnings multiple on a different basis. Equity value equals enterprise value minus net debt; negative net debt adds net cash. Negative equity results are preserved.

Worked example

Annual cash flow of 100,000 multiplied by an entered multiple of 4 gives enterprise value of 400,000. Subtracting 50,000 of net debt gives equity value of 350,000.

Assumptions and limits

This is not a certified valuation, appraisal or suggested market multiple. Assumes nonnegative operating cash flow on an unlevered basis and a multiple measured on that same basis. It does not reconcile inconsistent metrics, assess cash-flow quality, determine excess cash, or model ownership discounts, transaction terms, taxes or industry comparables.

How to choose your inputs

Use an enterprise-level, unlevered cash-flow measure before debt service and a multiple defined for that same measure. Do not enter cash already attributable only to equity holders and then subtract debt again. Net debt means debt minus excess cash, so a negative input represents excess cash greater than debt.

How to interpret your result

The enterprise value reflects the entered cash flow and multiple; subtracting net debt produces the equity scenario. Test the multiple and cash-flow assumptions independently to see which drives the result. A plausible multiplication does not validate the underlying cash flow, a market multiple or a sale price; those need separate evidence and a consistent valuation basis.

Primary references

This educational estimate uses your inputs. It is not individualized financial, tax, insurance, or investment advice, a lender offer, approval decision, or a promise of future results.

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