{
  "id": "v20-us-business-valuation",
  "version": "20.16.0",
  "name": "Business Valuation Scenario Calculator — United States",
  "shortName": "Business Valuation Scenario",
  "description": "Bridge an entered enterprise-value multiple to equity value without inventing comparable-company market data. USD planning view; stated limitations apply.",
  "category": "Finance",
  "categorySlug": "finance",
  "keywords": [
    "business-valuation",
    "us",
    "business-finance",
    "business-metrics"
  ],
  "status": "live",
  "workStatus": "pending",
  "reviewStatus": "pending",
  "migrationStatus": "new",
  "engine": "native",
  "creator": null,
  "reviewer": null,
  "quality": {
    "availability": "live",
    "technicalReviewRecord": "/reviews/v20-us-business-valuation.json",
    "qualifiedReview": "pending",
    "qualifiedReviewer": null,
    "qualifiedReviewDate": null,
    "formulaVersion": "20.16.0",
    "referenceCoverage": "references-listed",
    "releaseTestScope": "Catalog and regression checks are not a professional formula audit; consult release evidence.",
    "historicalMetadataDate": "",
    "historicalMetadataNotice": "The imported date is not evidence of a completed human review."
  },
  "notice": "Illustrative defaults are not local quotes or verified legal rules. Dated reference components and user-entered assumptions are explicitly distinguished. Professional review is pending.",
  "urls": {
    "page": "/us/business-valuation/",
    "definition": "/us/business-valuation/definition.json",
    "schema": "/us/business-valuation/schema.json",
    "llms": "/us/business-valuation/llms.txt",
    "legacyDefinition": "/us/business-valuation/definition.json"
  },
  "queryExample": "https://askcalculators.com/us/business-valuation/?ebitda=200000&multiple=4&spread=20&debt=300000&surplusCash=50000&workingCapitalAdjustment=0",
  "queryParameters": {
    "ebitda": {
      "label": "Normalized annual EBITDA for the scenario",
      "type": "money",
      "required": true,
      "default": 200000
    },
    "multiple": {
      "label": "Explicit enterprise-value / EBITDA multiple",
      "type": "number",
      "required": true,
      "default": 4
    },
    "spread": {
      "label": "Multiple sensitivity either side",
      "type": "percent",
      "required": true,
      "default": 20
    },
    "debt": {
      "label": "Debt and debt-like obligations",
      "type": "money",
      "required": true,
      "default": 300000
    },
    "surplusCash": {
      "label": "Cash truly surplus to operating needs",
      "type": "money",
      "required": true,
      "default": 50000
    },
    "workingCapitalAdjustment": {
      "label": "Confirmed working-capital price adjustment",
      "type": "number",
      "required": true,
      "default": 0
    }
  },
  "inputs": [
    {
      "id": "ebitda",
      "label": "Normalized annual EBITDA for the scenario",
      "type": "money",
      "defaultValue": 200000,
      "required": true,
      "min": 0,
      "max": 1000000000000,
      "step": 0.01,
      "prefix": "USD",
      "help": "Illustrative starting value; replace with your own evidence."
    },
    {
      "id": "multiple",
      "label": "Explicit enterprise-value / EBITDA multiple",
      "type": "number",
      "defaultValue": 4,
      "required": true,
      "min": 0,
      "max": 100,
      "step": 0.01,
      "help": "Illustrative starting value; replace with your own evidence."
    },
    {
      "id": "spread",
      "label": "Multiple sensitivity either side",
      "type": "percent",
      "defaultValue": 20,
      "required": true,
      "min": 0,
      "max": 100,
      "step": 0.1,
      "help": "Illustrative starting value; replace with your own evidence."
    },
    {
      "id": "debt",
      "label": "Debt and debt-like obligations",
      "type": "money",
      "defaultValue": 300000,
      "required": true,
      "min": 0,
      "max": 1000000000000,
      "step": 0.01,
      "prefix": "USD",
      "help": "Illustrative starting value; replace with your own evidence."
    },
    {
      "id": "surplusCash",
      "label": "Cash truly surplus to operating needs",
      "type": "money",
      "defaultValue": 50000,
      "required": true,
      "min": 0,
      "max": 1000000000000,
      "step": 0.01,
      "prefix": "USD",
      "help": "Illustrative starting value; replace with your own evidence."
    },
    {
      "id": "workingCapitalAdjustment",
      "label": "Confirmed working-capital price adjustment",
      "type": "number",
      "defaultValue": 0,
      "required": true,
      "min": -1000000000000,
      "max": 1000000000000,
      "step": 0.01,
      "help": "Illustrative starting value; replace with your own evidence."
    }
  ],
  "outputs": [
    {
      "id": "enterpriseValue",
      "label": "Enterprise-value scenario",
      "format": "currency",
      "digits": 2,
      "currency": "USD"
    },
    {
      "id": "equityValue",
      "label": "Equity-value scenario",
      "format": "currency",
      "digits": 2,
      "primary": true,
      "currency": "USD"
    },
    {
      "id": "lowEquity",
      "label": "Low multiple equity scenario",
      "format": "currency",
      "digits": 2,
      "currency": "USD"
    },
    {
      "id": "highEquity",
      "label": "High multiple equity scenario",
      "format": "currency",
      "digits": 2,
      "currency": "USD"
    }
  ],
  "formula": {
    "expression": "equity value = EBITDA × explicit enterprise multiple − debt + surplus cash + working-capital adjustment.",
    "note": "Inputs are converted to canonical units before evaluating this stated formula."
  },
  "examples": [
    {
      "label": "Illustrative defaults; required verification checks remain unconfirmed",
      "inputs": {
        "unitSystem": "imperial",
        "ebitda": 200000,
        "multiple": 4,
        "spread": 20,
        "debt": 300000,
        "surplusCash": 50000,
        "workingCapitalAdjustment": 0
      }
    }
  ],
  "sources": [
    {
      "label": "BDC EBITDA explanation",
      "url": "https://www.bdc.ca/en/articles-tools/entrepreneur-toolkit/templates-business-guides/glossary/ebitda"
    }
  ],
  "publicSlug": "business-valuation",
  "namespace": "us",
  "countries": [
    "us",
    "ca",
    "uk",
    "ie"
  ]
}