Equity Multiplier Calculator

Enter the total amount of assets and the total amount of stockholder’s equity. The calculator will determine the equity multiplier.

Equity Multiplier Formula

The following equation can be used to calculate an equity multiplier.

EM = A / SE

  • Where EM is the equity multiplier
  • A is the total assets
  • SE is the stockholder’s equity

Equity Multiplier Definition

An equity multiplier is a measure of how the total assets of a company reflects on the total stockholder’s equity. In general a larger ratio will indicate either less stockholder’s equity or more total assets.

Equity Multiplier Example

How to calculate an equity multiplier?

  1. First, determine the total assets.

    Determine the value of all of the assets of a company.

  2. Next, determine the total stock holder’s equity.

    Calculate the total value of the stock holder’s equity.

  3. Finally, calculate the equity multiplier.

    Calculate the equity multiplier with the equation above.

FAQ

What is an equity multiplier?

An equity multiplier is a measure of the ratio of the total asset value of a business and the total equity owned by the stockholders.

equity multiplier calculator
equity multiplier formula