What is the difference between enterprise value and equity value?

Enterprise value measures the operating business before financing. The calculator bridges to equity value by adding nonoperating cash and subtracting interest-bearing debt, then applies the selected ownership interest.

Why does the calculator use several methods?

No single method fits every closely held company. Cash flow, market evidence and underlying assets illuminate different parts of the economics; showing them side by side makes disagreements and assumption risk visible.

How should I choose WACC and perpetual growth?

They should reflect the risk, capital structure and sustainable mature growth of the specific company. The model requires WACC to exceed perpetual growth and shows a sensitivity grid because small changes can materially affect DCF value.

A discount for lack of marketability is a fact-specific adjustment sometimes considered for interests that cannot be readily sold. It is an advanced field here, requires a written rationale, and should not be applied mechanically.

Can I use this for a tax filing, 409A or court matter?

No. Those uses may require defined standards, evidence, procedures and an independent credentialed professional. This tool is an educational planning model only.

Business Valuation Calculator

Estimate enterprise and equity value with DCF, market and adjusted-asset methods, explicit reconciliation, scenarios and sensitivity analysis.

Model Section

Scope

Company Profile

Define the subject interest and the context for this planning estimate. The ownership percentage is applied after reconciling total equity value.

Company NameScenario NameValuation DateValuation PurposeJurisdictionEntity TypeIndustryOwnership Interest%The app estimates the pro rata subject interest before any DLOM.

Forecast Basis

Valuation Results

Equity Value Conclusion

Reconciled from the selected methods, ownership interest, and documented marketability adjustment.

Concluded Subject Interest

$4.71M

100.0% Interest, After 0.0% DLOM

Total Equity

$4.71M

Subject Interest

$4.71M

Terminal Value Share

59.2%

Implied EBITDA Multiple

5.0x

Low, Base, And High

Low

$3.72M

Base

$4.71M

High

$6.07M

Low and high cases move annual growth by 2 points, WACC by 2 points in the opposite direction, perpetual growth by 0.5 points, and the selected multiple by 1.0x.

WACC-Growth Sensitivity

DCF Equity

Growth / WACC	13.0%	14.0%	15.0%	16.0%	17.0%
2.0%	$6.03M	$5.48M	$5.02M	$4.63M	$4.28M
2.5%	$6.24M	$5.65M	$5.16M	$4.74M	$4.38M
3.0%	$6.47M	$5.83M	$5.31M	$4.86M	$4.48M
3.5%	$6.72M	$6.04M	$5.47M	$5M	$4.59M
4.0%	$7M	$6.26M	$5.65M	$5.14M	$4.71M

Calculation Trace

1. Normalize Earnings: $850,000 reported EBITDA plus $165,000 adjustments equals $1,015,000.
2. Forecast FCFF: Project 5 years using the selected operating driver basis.
3. Calculate Terminal Value: Final FCFF × (1 + perpetual growth) ÷ (WACC - perpetual growth) = $6,733,923.
4. Bridge DCF To Equity: $5,658,721 enterprise value + $350,000 cash - $700,000 debt = $5,308,721.
5. Market Cross-Check: $1,015,000 adjusted EBITDA × 5.5x, then the cash/debt bridge, equals $5,232,500.
6. Asset Cross-Check: $2,400,000 adjusted assets - $900,000 liabilities = $1,500,000.
7. Reconcile Methods: Apply only the user-entered 50% DCF, 35% market, and 15% asset weights = $4,710,736 total equity.
8. Value The Interest: Apply the 100% ownership interest and then the documented 0% DLOM = $4,710,736.

Saved Scenarios

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What Is the Business Valuation Calculator?

The Business Valuation Calculator examines a company through discounted free cash flow, an adjusted-EBITDA market multiple and adjusted net assets. It includes a normalization ledger, operating forecast, WACC and perpetual-growth sensitivity grid, marketability discount controls, qualitative risk review, low, base and high cases, and an enterprise-to-equity bridge. You assign explicit reconciliation weights before the calculator produces a conclusion.

How It Works

Define the company, valuation purpose, date, jurisdiction and ownership interest. Build the cash-flow forecast from operating drivers or normalized FCFF, document owner-compensation and nonrecurring adjustments, then enter market-multiple and asset cross-checks. Review the warnings, terminal-value share, implied multiple and sensitivity grid. Assign method weights totaling exactly 100%, document any DLOM, and save or export named scenarios for comparison.

When to Use It

Use it for educational planning before a sale, acquisition conversation, succession decision, capital raise or professional appraisal engagement. It helps expose which assumptions drive value and organizes questions for a valuation professional, CPA and attorney; it is not a certified appraisal or filing-ready conclusion.

Frequently Asked Questions

What is the difference between enterprise value and equity value?: Enterprise value measures the operating business before financing. The calculator bridges to equity value by adding nonoperating cash and subtracting interest-bearing debt, then applies the selected ownership interest.
Why does the calculator use several methods?: No single method fits every closely held company. Cash flow, market evidence and underlying assets illuminate different parts of the economics; showing them side by side makes disagreements and assumption risk visible.
How should I choose WACC and perpetual growth?: They should reflect the risk, capital structure and sustainable mature growth of the specific company. The model requires WACC to exceed perpetual growth and shows a sensitivity grid because small changes can materially affect DCF value.
What is DLOM?: A discount for lack of marketability is a fact-specific adjustment sometimes considered for interests that cannot be readily sold. It is an advanced field here, requires a written rationale, and should not be applied mechanically.
Can I use this for a tax filing, 409A or court matter?: No. Those uses may require defined standards, evidence, procedures and an independent credentialed professional. This tool is an educational planning model only.

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