Enter the total annual company revenue ($) and the valuation multiple (x) into the calculator to determine the Company Valuation. 

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:

  1. First, determine the total annual company revenue ($). In this example, the total annual company revenue ($) is given as 50,000.
  2. Next, determine the valuation multiple (x). For this problem, the valuation multiple (x) is given as 20.
  3. 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 ($)