Valuation Calculator - EBITDA and FCD
Estimate the market value of a company (Valuation) through multiples of EBITDA or discounted cash flow (FCD). Simulate online for free.
What is the purpose?
The objective of the Valuation Calculator is to provide an estimate of the market value of a company, assisting investors and founders in fundraising rounds, mergers and acquisitions (M&A) or viability analysis.
Formula Used
The calculator supports two traditional evaluation methods:
- EBITDA Multiple Method:
- Quick estimate based on operating cash generation adjusted by debt:
Enterprise Value (EV) = EBITDA × MúltiploEquity Value = EV - Dívida Líquida
- Discounted Cash Flow Method (DCF):
- Brings the company's future cash flows and residual value to present value using the WACC rate (
r): Valor Presente (VP) = \sum_{t=1}5 Fluxo de Caixa_t(1 + r)t
The Terminal Value (VT) in year 5 with perpetual growth rate (g) is:VT = Fluxo de Caixa_5 × (1 + g)r - gVP do Valor Terminal = VT(1 + r)5Enterprise Value (EV) = VP (Fluxos) + VP (Valor Terminal)Equity Value = EV - Dívida Líquida
How to interpret the result?
Enterprise Value represents the total operating value of the company, while Equity Value represents the part belonging to shareholders (after discounting debts and adding cash resources).
Practical Examples
- Valuation by Multiples: EBITDA of
2.000.000,00, múltiplo de 6x e Dívida Líquida de3,000,000.00: EV =2000000 × 6 = R\12,000,000.00. Equity Value =12000000 - 3000000 = R\9.000.000,00. - Valuation by FCD: Cash flows of
500.000,00 anuais, WACC de 12% e crescimento perpétuo de 3%: VP dos fluxos dos anos 1 a 5 =1,802,388.11. Terminal Value =[500000 × (1 + 0,03)] ÷ (0,12 - 0,03) = R\5,722,222.22. VP do Valor Terminal =5722222.22 \div (1,12)^5 = R\3.247.017,80. Enterprise Value = $5,049,405.91.
Usage Tips
- The multiples method is best for mature companies in stable industries. FCD is ideal for startups or companies with detailed growth projections.
- The WACC rate must reflect the real risk of the business and the cost of equity and third parties.
- Keep the perpetual growth rate (
g) conservative, generally close to or below projected inflation or long-term GDP growth.
Important Observations
DCF Valuation is highly sensitive to discount rate (WACC) and perpetual growth (g) assumptions. Small variations in these rates can drastically change the final estimated value.