Enter the total annual company revenue ($) and the valuation multiple (x) into the calculator to determine the Company Valuation.
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Company Valuation Formula
The following formula is used to calculate the Company Valuation.
CV = AR * X
- Where CV is the Company Valuation ($)
- AR is the total annual company revenue ($)
- X is the valuation multiple (x)
How to Calculate Company Valuation?
The following example problems outline how to calculate Company Valuation.
Example Problem #1:
- First, determine the total annual company revenue ($). In this example, the total annual company revenue ($) is given as 50,000.
- Next, determine the valuation multiple (x). For this problem, the valuation multiple (x) is given as 20.
- Finally, calculate the Company Valuation using the equation above:
CV = AR * X
The values given above are inserted into the equation below:
CV = 50,000 * 20 = 1,000,000.00 ($)
Example Problem #2:
The variables needed for this problem are provided below:
total annual company revenue ($) = 75,000
valuation multiple (x) = 30
Entering these values and solving gives:
CV = 75,000 * 30 = 2,250,000.00 ($)
