Small Business Valuation Calculator
Model enterprise and equity value from your earnings multiple, then compare assumptions and download the calculation.
Model Business Value
From Earnings to Enterprise Value
Enterprise value equals normalised annual earnings multiplied by your entered earnings multiple. The calculator uses the same earnings basis for every comparison.
EBIT excludes interest and tax. EBITDA also excludes depreciation and amortisation. Normalised earnings reflect supported adjustments to the business’s reported results, such as non-recurring items.
Choose a multiple consistent with that earnings basis and the operating assets included. A multiple derived from net profit cannot be applied unchanged to EBITDA.
In the hypothetical starting scenario, AUD $140,000 of earnings multiplied by 3 equals AUD $420,000 enterprise value. The entered multiples are examples, with no prefilled Australian industry benchmark.
Negative earnings retain their sign. A zero multiple gives zero enterprise value before cash and debt adjustments. These arithmetic outcomes do not establish a distressed business’s sale or asset value.
Bridge Enterprise Value to Equity Value
Equity value equals enterprise value plus surplus cash, less debt, plus the signed other adjustment, less non-controlling interests. The bridge shows every adjustment separately.
The example adds AUD $20,000 surplus cash to AUD $420,000 enterprise value and deducts AUD $90,000 debt. Equity value is AUD $350,000 before additional adjustments.
Include each balance once. If an input already deducts net debt, entering that debt again understates equity. Exclude cash needed for ordinary operations from surplus cash.
Non-controlling interests deduct subsidiary ownership already included in a consolidated enterprise value. The separate ownership share multiplies the resulting equity value to model your selected interest.
A 25% ownership share of AUD $350,000 gives AUD $87,500. This pro-rata arithmetic applies no discount for minority ownership or lack of marketability. A negative equity balance remains negative.
Compare Australian Valuation Assumptions
This small business valuation calculator for Australia models the assumptions you enter. It contains no Australian industry multiple table or automated asset appraisal.
Use annual earnings excluding recoverable GST. Cash and debt are entered balances. Currency labels identify each scenario’s amounts without converting them or adding GST.
The sensitivity grid holds the bridge adjustments fixed and crosses your three multiples with earnings at 90%, 100% and 110% of the entered amount. Cells show total equity value before your ownership share.
| Earnings | 2 times | 3 times | 4 times |
|---|---|---|---|
| AUD 126,000 | AUD 182,000 | AUD 308,000 | AUD 434,000 |
| AUD 140,000 | AUD 210,000 | AUD 350,000 | AUD 490,000 |
| AUD 154,000 | AUD 238,000 | AUD 392,000 | AUD 546,000 |
At AUD $140,000 earnings, multiples of 2, 3 and 4 produce equity values of AUD $210,000, AUD $350,000 and AUD $490,000. Each includes the same AUD $70,000 net cash-and-debt deduction.
The original scenario starts with the hypothetical defaults. Use “Use current as original” to save your own baseline before editing revised assumptions.
| Result | Original AUD | Revised AUD |
|---|---|---|
| Enterprise value | AUD 420,000 | AUD 420,000 |
| Equity value | AUD 350,000 | AUD 350,000 |
| Ownership interest | AUD 350,000 | AUD 350,000 |
The CSV keeps original and revised assumptions, each enterprise-to-equity bridge and all sensitivity rows. It retains plain unrounded numbers, the earnings basis and the selected currency.
An expert must substantiate earnings adjustments, multiples and the treatment of debt and ownership rights before relying on a valuation. The APES 225 valuation standard governs professional valuation services, including calculation engagements.
This worksheet supplies arithmetic only. Using it does not create an APES 225 engagement or a valuation opinion. Read the business valuation guide for the evidence and methods behind the inputs.