Acquisition Tool

Enterprise Value Calculator

Calculate enterprise value using industry-specific EV/EBITDA multiples, then derive equity value by adjusting for debt and cash.

Industry

Select the business's industry to apply the appropriate EV/EBITDA multiple range.

Financial Inputs

Enter the business's key financial figures. EBITDA and industry are required; revenue, debt, and cash are used for additional analysis.

Total top-line revenue. Used to calculate the implied EV/Revenue multiple.

Earnings Before Interest, Taxes, Depreciation & Amortization. Don't know your EBITDA? Use our EBITDA Calculator

Debt and cash adjust Enterprise Value to calculate Equity Value — the actual purchase price for the ownership stake.

All interest-bearing debt — loans, lines of credit, equipment financing, SBA loans.

Cash on hand, money market accounts, and other liquid assets that transfer with the business.

What Is Enterprise Value?

Enterprise Value (EV) represents the total value of a business — what an acquirer would pay to buy the entire company, including its debt obligations. Unlike market capitalization or equity value, EV accounts for the full capital structure of the business.

For business acquisitions, EV is typically calculated as EBITDA multiplied by an industry-specific multiple. The resulting enterprise value is then adjusted for debt and cash to arrive at the equity value — the actual price a buyer pays for the ownership stake.

Enterprise Value Formula

Enterprise Value = EBITDA × EV/EBITDA Multiple Equity Value = Enterprise Value − Total Debt + Cash

The EV/EBITDA multiple varies by industry, company size, growth rate, and quality of earnings. Higher multiples are paid for businesses with recurring revenue, strong growth, and low owner dependency.

Enterprise Value vs. Equity Value

Enterprise Value Equity Value
Includes Total business value (all stakeholders) Owner's share only
Debt Included (buyer assumes it) Subtracted out
Cash Not included Added back
Used for Comparing across companies Determining purchase price

EV/EBITDA Multiples by Industry

EV/EBITDA multiples vary widely. Service businesses with recurring revenue (IT services, pest control) command 6–11x, while asset-heavy businesses (gas stations, trucking) trade at 3–6x. Multiples also increase with company size — a $500K EBITDA business might trade at 4x while a $5M EBITDA business in the same industry trades at 7x.

Use the calculator above to see the specific multiple range for your target industry, then adjust based on the business's growth profile, customer concentration, and competitive position.

Join 2,000+ Searchers and Sponsors

One email per week. No spam. Unsubscribe anytime.