How it works
Bridge an entered enterprise-value multiple to equity value without inventing comparable-company market data.
This is the Canada planning view, with monetary inputs and outputs in CAD. A currency label does not establish that a tax rate, construction price, coverage rule or legal limit has been verified locally. The inputs and limitations below describe the actual scope.
Input query strings and outputs
Use an input name in this page’s URL as ?name=value, and join additional inputs with &. Portable shared links may instead use the compact ?ac= state parameter.
Input query strings
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?ebitda=Normalized annual EBITDA for the scenarioMoney · Required · Default: 200,000
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?multiple=Explicit enterprise-value / EBITDA multipleNumber · Required · Default: 4
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?spread=Multiple sensitivity either sidePercentage · Required · Default: 20
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?debt=Debt and debt-like obligationsMoney · Required · Default: 300,000
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?surplusCash=Cash truly surplus to operating needsMoney · Required · Default: 50,000
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?workingCapitalAdjustment=Confirmed working-capital price adjustmentNumber · Required · Default: 0
Outputs
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enterpriseValueEnterprise-value scenarioCurrency · Currency: CAD
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equityValueEquity-value scenarioCurrency · Primary output · Currency: CAD
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lowEquityLow multiple equity scenarioCurrency · Currency: CAD
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highEquityHigh multiple equity scenarioCurrency · Currency: CAD
Formula
equity value = EBITDA × explicit enterprise multiple − debt + surplus cash + working-capital adjustment.
Calculations retain numeric precision internally. Displayed values are rounded for readability. Quantities that must be purchased as whole units are rounded up only where the formula explicitly requires it.
Read the inputs before calculating
- Normalized annual EBITDA for the scenario: Enter the quantity described by the label.
- Explicit enterprise-value / EBITDA multiple: Enter the quantity described by the label.
- Multiple sensitivity either side: Enter the quantity described by the label.
- Debt and debt-like obligations: Enter the quantity described by the label.
- Cash truly surplus to operating needs: Enter the quantity described by the label.
- Confirmed working-capital price adjustment: Enter the quantity described by the label.
Reproducible worked example
The following is a fictional arithmetic example, not a local quote, a verified claimant or a market forecast. Its values are included so the formula can be checked. The form does not automatically confirm any verification checkbox.
| Input | Example value |
|---|---|
| Normalized annual EBITDA for the scenario | 200,000 |
| Explicit enterprise-value / EBITDA multiple | 4 |
| Multiple sensitivity either side | 20 |
| Debt and debt-like obligations | 300,000 |
| Cash truly surplus to operating needs | 50,000 |
| Confirmed working-capital price adjustment | 0 |
| Output | Calculated result |
|---|---|
| Enterprise-value scenario | CAD 800,000 |
| Equity-value scenario | CAD 550,000 |
| Low multiple equity scenario | CAD 390,000 |
| High multiple equity scenario | CAD 710,000 |
Interpreting a changed assumption
Start with one complete scenario and change only one input when diagnosing a difference. Recheck units, the period of every rate, whether an amount is recurring or one-off, and whether a cost is already included elsewhere. A larger calculated benefit is not evidence that an assumption is more likely to occur.
Limitations
- Inputs are explicit management assumptions. This is not a valuation opinion, tax filing, employment-law assessment or investment recommendation.
- An entered multiple is not a researched market multiple. Maintainable earnings, owner adjustments, lease accounting, taxes, control, liquidity, debt-like items and transaction structure need professional diligence. Negative equity is not clamped to zero.
Frequently asked questions
What does this Business Valuation Scenario result represent?
Bridge an entered enterprise-value multiple to equity value without inventing comparable-company market data. It applies the displayed formula to your inputs; it does not infer omitted facts.
Are the starting amounts verified Canada prices or legal rules?
No. Numeric defaults are illustrative unless an input or dated reference explicitly identifies a researched component. Currency is CAD; local quotes, eligibility and unsupported rules must be entered and verified separately.
What must I check before relying on the result?
Inputs are explicit management assumptions. This is not a valuation opinion, tax filing, employment-law assessment or investment recommendation.
Can I compare or share different assumptions?
Change one assumption at a time and use the browser-local project or share controls. A shared URL contains the encoded input values; do not include information you do not wish to disclose.
Sources and reference scope
- BDC EBITDA explanation — retrieved 2026-09-25. An entered EBITDA multiple is an assumption, not a researched market multiple.
These references support only their stated scope. They are not evidence that every local rule or price needed by the master expansion has been loaded.