The Complete Business Valuation Formula Guide: 10 Essential Methods
Equilest
FEBRUARY 24, 2024
Market-Based Business Valuation Formula For a market-based calculation, use: CV = (EBITDA x 1.5) – (Current Liabilities x 0.5) Or V = (EBITDA * 1.3) / (Revenue – COGS) As an example, if a business's EBITDA is $300,000 and current liabilities are $50,000, the calculation would be: ($300,000 x 1.5) - ($50,000 x 0.5) = $425,000.
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