Calculate the value of a business
Enter EBITDA, financial debt and cash, and pick the type of activity. You get an indicative range for the enterprise value and for the value of the shares.
Your figures
Pre-filled with an example. Replace the figures with those of your company or your customer.
Operating profit plus depreciation, corrected for one-off items and a market-rate salary for the owner-manager.
Bank loans, leasing and subordinated loans, long and short term.
Result
Value of the shares
EBITDA is zero or negative. An EBITDA multiple says nothing then; look at turnover, equity or assets instead.
- EBITDA ×
- EBITDA ×
Net debt exceeds the enterprise value: on paper the shares are worth nothing. A buyer mainly takes over the debt.
This tool gives an indication based on the figures you enter. It does not replace advice from your accountant.
How it works
Enterprise value is EBITDA multiplied by a multiple. The multiple depends on the sector, growth, dependence on the owner-manager and the size of the business.
The value of the shares is the enterprise value minus net debt: financial debt minus cash. Trade payables and suppliers do not count here.
The multiples per type of activity are indicative ranges for Belgian SMEs. Small businesses sit at the bottom of the range, businesses with recurring revenue and a strong team at the top.
Normalise EBITDA first: remove one-off costs and income and count a market-rate salary for the owner-manager. Without that step the value is too high or too low.
Frequently asked questions
Where do I find a company's EBITDA?
In the annual accounts: operating profit (code 9901) plus depreciation and write-downs (codes 630 to 634). On Jaarrekening.be, EBITDA is calculated on the Financial ratios tab of every company.
Which multiple is realistic for my business?
For most Belgian SMEs the multiple sits between 3 and 6 times EBITDA. IT companies with recurring revenue get more, hospitality and retail less. An M&A adviser or auditor refines the range using comparable transactions.
Why subtract the debt?
The multiple values the whole business regardless of who finances it. A buyer who takes over the shares also takes over the bank debt and receives the cash. So the value of the shares is the enterprise value minus net debt.
Is this an official valuation?
No. It is a first indication using the most common method. For a sale, a divorce or a tax dispute, have a valuation prepared by a registered auditor or a specialised adviser, who also uses other methods.
Rather not calculate?
Look up the company and we show the score, the credit limit and the sector benchmark from its latest annual accounts.
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