Trading Comparables Valuation Calculator

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Trading Comparables Valuation Calculator

Trading Comparables Valuation estimates a company’s value by comparing it to similar publicly traded companies using valuation multiples. These include Enterprise Value multiples and Equity Value multiples. More info →

Input

Valuation Basis

Revenue

EV / Revenue Multiple (x)

Debt / Debt-Like Items

Long Term Debt

End of Service Benefits (EOSB)

Other Debt-Like Adjustments

Cash / Cash-Like Items

Negative values are allowed for Cash & Cash Equivalents.

Cash & Cash Equivalents

Marketable Securities

Other Cash-Like Items

Select the valuation basis and enter the required inputs to estimate Enterprise Value and Equity Value.

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How This Calculator Works

Similar listed companies trade at similar multiples, for example 8 times EBITDA. This calculator applies such a multiple to your company's figure to estimate its value. Some multiples give enterprise value (the whole business); others give equity value (the shareholders' part). The calculator then uses net debt to work out the other one.

The Formulas

Revenue, EBITDA, EBIT, FCFF: EV = Value × Multiple; Equity = EV − Net Debt
Net Profit, FCFE, Book Value: Equity = Value × Multiple; EV = Equity + Net Debt

Net Debt = (Long-Term Debt + EOSB + Other Debt-Like) − (Cash + Marketable Securities + Other Cash-Like)

What Each Input Does

Valuation Basis: The figure the multiple is applied to. This decides whether the result is enterprise value or equity value first.
Input Value: Your company's figure for that basis, for example its EBITDA.
Multiple: The typical multiple for comparable companies, for example an EV/EBITDA of 8.
Debt and Cash Items: Used to work out net debt, the bridge between enterprise value and equity value.

Step by Step

Total debt, total cash and net debt are worked out.
The input value is multiplied by the multiple.
For enterprise-value bases, net debt is subtracted to get equity value.
For equity-value bases, net debt is added to get enterprise value.

Reading the Result

Enterprise and equity value – an estimate based on how the market values similar companies.

Quick Example

EBITDA 500,000 at a multiple of 8, debt 1,000,000, cash 300,000. Enterprise value = 4,000,000; net debt is 700,000, so equity value = 3,300,000. Using net profit 300,000 at a P/E of 12 instead: equity value 3,600,000, enterprise value 4,300,000.