Business Valuation

Estimate the total worth of your company (Enterprise Value) and what the shareholders actually own (Equity Value) using the standard EBITDA multiple approach.

Annual EBITDA (Operating Profit)

Earnings Before Interest, Taxes, Depreciation, and Amortization.

Industry Valuation Multiple

Typical range is 4x to 12x depending on growth and industry sector.

Balance Sheet Adjustments

Total Cash & Equivalents (+)

Total Outstanding Debt (-)

Shareholder Equity Value

₹38,00,00,000

Enterprise Value (EV)

₹40,00,00,000

The Math Structure

EBITDA (₹5,00,00,000) * 8x₹40,00,00,000 (EV)

Add: Cash+₹1,00,00,000

Less: Debt-₹3,00,00,000

Final Equity Value₹38,00,00,000

EV vs Equity Value Breakdown

Enterprise Value (EV) is the total value of the company's operating core. It's what a theoretical acquirer pays to buy the business outright.
Equity Value is what the founders and investors actually own. When a company is acquired, the acquirer pays off the debt, keeps the cash, and remits the Equity Value to the shareholders.

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