Enterprise value estimate = adjusted EBITDA × selected multiple. Equity estimate then considers entered debt and excess cash.
Enter realistic numbers from the property, equipment, job record, or company reports. Small input changes can produce large differences, so compare the estimate with actual performance.
Practical answers
What is adjusted EBITDA?
Adjusted EBITDA is a planning measure that starts with earnings before interest, taxes, depreciation, and amortization, then considers documented owner, one-time, or nonrecurring adjustments.
What affects a service-business multiple?
Factors may include recurring revenue, management depth, customer concentration, workforce stability, financial quality, growth, market position, equipment, risk, and buyer demand.
Is this a formal valuation?
No. A formal valuation or transaction analysis should be completed by qualified financial, tax, legal, and transaction professionals using complete records.