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The Complete Business Valuation Formula Guide: 10 Essential Methods

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Equity Multiplier Business Valuation Formula The equity multiplier is found using: Equity Multiplier = Current Value / EBITDA For instance, if a business has a current value of $1,000,000 and an EBITDA of $200,000, the equity multiplier would be: $1,000,000 / $200,000 = 5.

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Company Valuation Methods—Complete List and Guide

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This is accomplished through methods like Comparable Company Analysis, Precedent Transaction Analysis, and Market Capitalization, which collectively offer insights into the company’s value within the context of the broader market landscape.