Business valuation (EBITDA multiple)
A quick estimate of a small business's value from its EBITDA and debt.
How it works
Enterprise value = EBITDA × multiple. Equity value = enterprise value − debt + cash. Small businesses often sell for 3–7× EBITDA: a rough guide, not a formal valuation.
Results are for guidance only and do not replace professional advice.
Worked example
With the default values:
- Yearly EBITDA180000
- Sector multiple5.5
- Financial debt220000
- Cash available90000
you get:
- Equity value€860,000.00
- Enterprise value (EV)€990,000.00
- Range (multiple ± 1)€680,000.00 – €1,040,000.00
- Net debt€130,000.00
Frequently asked questions
How does the “Business valuation” tool work?
Enterprise value = EBITDA × multiple. Equity value = enterprise value − debt + cash. Small businesses often sell for 3–7× EBITDA: a rough guide, not a formal valuation.
What do I need to enter?
Just fill in: yearly ebitda, sector multiple, financial debt, cash available. The result updates as you type.
Can you give an example?
Yearly EBITDA: 180000; Sector multiple: 5.5; Financial debt: 220000; Cash available: 90000 → Equity value: €860,000.00; Enterprise value (EV): €990,000.00.
Is this calculator free, and is my data private?
Yes. HOD Calc is completely free with no sign-up. The calculation runs in your browser: nothing you type is sent or stored.