Business Valuation Calculator
This calculator provides quick, side‑by‑side estimates of business value using three common approaches: a simplified Discounted Cash Flow (DCF), market multiples (revenue and EBITDA), and an asset‑based net tangible asset method. Use inputs that reflect normalized operating performance and up‑to‑date balance sheet items.
Results are indicative only. The tool is intended for early screening and scenario comparison; it does not replace a formal valuation prepared by qualified professionals who will model tax, capital expenditures, working capital, and company‑specific risk in detail.
Governance
Record 89a237e8468d • Reviewed by Fidamen Standards Committee
Projects operating cash flows from current revenue using a constant growth and EBITDA margin, discounts them, and adds a terminal value. This is a simplified FCF approach for quick estimates; detailed valuations should model capex, working capital, and separate tax/leverage effects.
Inputs
Results
Enterprise value (DCF)
$1,626,988.38
Equity value (DCF)
$1,626,988.38
Equity per share (DCF)
$1,626,988.38
| Output | Value | Unit |
|---|---|---|
| Enterprise value (DCF) | $1,626,988.38 | USD |
| Equity value (DCF) | $1,626,988.38 | USD |
| Equity per share (DCF) | $1,626,988.38 | USD |
Visualization
Methodology
Discounted Cash Flow (simplified): projects operating cash flows derived from current revenue, a constant growth rate and EBITDA margin, applies a tax factor, discounts forecast cash flows, and adds a terminal value derived from final year FCF. This is a simplification intended for rapid estimates.
Market multiples: applies an industry revenue multiple and an EBITDA multiple to derive enterprise values from each approach and reports each result plus their average. Select multiples based on recent comparable transactions or public company trading multiples.
Asset‑based: uses net tangible assets to estimate a floor/ liquidation value. This method is most relevant for asset‑heavy companies or distressed scenarios and does not capture going‑concern earnings power.
Key takeaways
Use the DCF method for earnings‑driven valuations and when you have reasonable growth and discount rate assumptions. Use market multiples to benchmark against peers and recent transactions. Use asset‑based metrics as a conservative floor.
Inputs strongly affect output: small changes in discount rate, growth, or multiples materially alter value. Always perform sensitivity analysis (vary discount rate, growth, and multiples) before making decisions.
Worked examples
Example 1 (DCF): Revenue $1,000,000, growth 5%, EBITDA margin 15%, tax 25%, discount 10%, terminal growth 2%, 5‑year forecast → enterprise value computed as PV of forecast FCF plus discounted terminal value; equity value adjusted for cash and debt.
Example 2 (Multiples): Same company with industry revenue multiple 1.2x and EBITDA multiple 6x produces EV from revenue = $1,200,000 and EV from EBITDA = (1,000,000 × 0.15) × 6 = $900,000; average EV = $1,050,000.
F.A.Q.
How accurate are the results?
This tool provides indicative estimates. Accuracy depends on input quality and method suitability. It omits detailed items such as capex schedules, working capital changes, non‑operating items, and contingent liabilities. For transaction pricing or formal opinions, engage a qualified valuation professional or CPA.
Which method should I use for my business?
No single method fits all. Use DCF when cash flows are stable and forecastable, market multiples for benchmarking against peers or recent transactions, and asset‑based approaches for asset‑intensive or liquidation scenarios. Compare multiple methods and document assumptions.
Are per‑share results precise if shares outstanding is zero?
Per‑share estimates require a valid positive shares outstanding input. If shares outstanding is zero or not provided, per‑share outputs will be shown as not meaningful. Always confirm the correct share count for equity calculations.
Does the calculator follow any standards?
The calculator documents methodology and error controls consistent with common information security and quality standards. For governance and reproducibility, users should follow applicable professional valuation standards and applicable regulatory guidance when preparing formal valuation reports.
Can the tool be used for regulatory filings or tax opinions?
No. Outputs are for informational use only and are not a substitute for professional appraisals, tax opinions, or independent audit work. Regulatory or tax filings typically require detailed methods, supporting schedules, and certified valuation reports.
Sources & citations
- National Institute of Standards and Technology (NIST) - overview on measurement and verification — https://www.nist.gov
- International Organization for Standardization (ISO) — https://www.iso.org
- IEEE - Engineering and technical best practices — https://www.ieee.org
- Occupational Safety and Health Administration (OSHA) - general safety guidance — https://www.osha.gov
- CFA Institute — Equity Valuation Standards — https://rpc.cfainstitute.org/
- FASB ASC 820 — Fair Value Measurement — https://www.fasb.org/
- AICPA — Valuation Services — https://www.aicpa-cima.com/
Further resources
Versioning & Change Control
Audit record (versions, QA runs, reviewer sign-off, and evidence).
Record ID: 89a237e8468dWhat changed (latest)
v1.0.0 • 2025-11-13 • MINOR
Initial publication and governance baseline.
Why: Published with reviewed formulas, unit definitions, and UX controls.
Public QA status
PASS — golden 25 + edge 120
Last run: 2026-01-23 • Run: golden-edge-2026-01-23
Versioning & Change Control
Audit record (versions, QA runs, reviewer sign-off, and evidence).
What changed (latest)
v1.0.0 • 2025-11-13 • MINOR
Initial publication and governance baseline.
Why: Published with reviewed formulas, unit definitions, and UX controls.
Public QA status
PASS — golden 25 + edge 120
Last run: 2026-01-23 • Run: golden-edge-2026-01-23
Engine
v1.0.0
Data
Baseline (no external datasets)
Content
v1.0.0
UI
v1.0.0
Governance
Last updated: Nov 13, 2025
Reviewed by: Fidamen Standards Committee (Review board)
Credentials: Internal QA
Risk level: low
Reviewer profile (entity)
Fidamen Standards Committee
Review board
Internal QA
Entity ID: https://fidamen.com/reviewers/fidamen-standards-committee#person
Semantic versioning
- MAJOR: Calculation outputs can change for the same inputs (formula, rounding policy, assumptions).
- MINOR: New features or fields that do not change existing outputs for the same inputs.
- PATCH: Bug fixes, copy edits, or accessibility changes that do not change intended outputs except for previously incorrect cases.
Review protocol
- Verify formulas and unit definitions against primary standards or datasets.
- Run golden-case regression suite and edge-case suite.
- Record reviewer sign-off with credentials and scope.
- Document assumptions, limitations, and jurisdiction applicability.
Assumptions & limitations
- Uses exact unit definitions from the Fidamen conversion library.
- Internal calculations use double precision; display rounding follows the unit's configured decimal places.
- Not a substitute for calibrated instruments in regulated contexts.
- Jurisdiction-specific rules may require official guidance.
Change log
v1.0.0 • 2025-11-13 • MINOR
Initial publication and governance baseline.
Why: Published with reviewed formulas, unit definitions, and UX controls.
Areas: engine, content, ui • Reviewer: Fidamen Standards Committee • Entry ID: 9e189765761f