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Multiple Valuation Calculator

Estimate enterprise value and equity value from a metric (ARR or revenue) and a valuation multiple (with net debt adjustments).

Multiple-based valuation is a fast way to estimate enterprise value by applying a market multiple to a metric like ARR or revenue.

This calculator estimates enterprise value (metric x multiple) and then bridges to equity value using cash and debt.

Prefer an explanation- Read the guide.
Related definitions:enterprise valueequity valuenet debtarrarr valuation multiple
Multiple valuation: how to use ARR/revenue multiples and avoid mix-upsValuation modeling hub: WACC, DCF, multiples, and equity valueARR valuation sensitivity: a simple multiple grid for scenariosFundraising & valuation hub: pre/post-money, SAFEs, notes, and liquidation prefs
 
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Tip: you can type commas (e.g., 10,000).

Example

Using the default inputs, the result is:
$30,000,000.00
Metric value (ARR or revenue)
$5,000,000
Valuation multiple
6
Cash
$1,000,000
Debt
$2,000,000

How to calculate

  1. Choose a metric value (ARR or annual revenue) and a multiple.
  2. Compute enterprise value = metric x multiple.
  3. Bridge to equity value using cash and debt (net debt).

Formula

EV = metric x multiple; Equity value = EV + cash - debt
  • Multiple is applied to a single metric definition (be consistent).
  • Uses a simplified EV-to-equity bridge (cash and debt only).
  • Multiple selection should reflect growth, margin, and retention context.

FAQ

ARR multiple vs revenue multiple: which should I usex
For subscription businesses, ARR multiples are common because ARR captures recurring run-rate. Revenue multiples can be more appropriate when revenue is mostly recurring and recognized consistently. Always match the multiple to the metric definition used by comps.
Why does equity value differ from EVx
Because EV represents the operating business value before financing. Equity value is what remains for shareholders after adjusting for net debt and other claims.

Common mistakes

  • Mixing EV multiples with equity value comparables (mismatch).
  • Using the wrong metric definition (gross vs net revenue, recurring vs one-time).
  • Using a multiple without context (growth, margin, retention).

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Quick checks

  • Use consistent time units (monthly vs annual) when entering rates and cash flows.
  • Run a sensitivity check on the input that drives the result most (often discount rate or growth).
  • Treat the output as a decision aid, not a prediction; validate assumptions with reality.