Business Valuation Calculator

A discounted cash flow valuation alongside EBITDA and revenue multiples, from enterprise value to equity value.

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Discounted cash flow

AED
%
years
%
%

Must be lower than the discount rate.

Market multiples and net debt

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×
AED
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AED
AED

Valuation summary

Indicative enterprise value range
AED 21,000,000 – AED 28,061,540
Net debt
AED 1,500,000
Enterprise and equity value by method
MethodEnterprise valueEquity value
Discounted cash flowAED 28,061,540AED 26,561,540
EV / EBITDAAED 21,000,000AED 19,500,000
EV / RevenueAED 22,500,000AED 21,000,000

DCF detail

Forecast free cash flows and present values
PeriodFree cash flowPresent value
Year 1AED 2,160,000AED 1,928,571
Year 2AED 2,332,800AED 1,859,694
Year 3AED 2,519,424AED 1,793,276
Year 4AED 2,720,978AED 1,729,231
Year 5AED 2,938,656AED 1,667,472
Terminal valueAED 33,631,287AED 19,083,295

Terminal value uses the Gordon growth model at 3% a year. Multiples vary by sector, size and market; use recent comparable deals. This is an indicative range, not a formal valuation.

Results are estimates for general information. They are not tax, legal or financial advice. Rules and rates change, so please check with an advisor before you act on them.

How it works

The discounted cash flow (DCF) method grows today's free cash flow over the forecast period, adds a terminal value for the years after, and discounts everything back at your weighted average cost of capital (WACC).

The multiples method compares your business with similar ones using enterprise value to EBITDA or to revenue. Subtracting net debt (debt less cash) turns enterprise value into equity value, the value to shareholders.

Questions

Which valuation method is right?

Most valuations use more than one. DCF reflects your own forecasts; multiples reflect what the market pays. A wide gap between them is worth investigating.

Is this a formal valuation?

No. It gives an indicative range. Transactions, disputes and financial reporting need a formal valuation with full due diligence.

Want it done for you?

Our Corporate Finance & Transaction Advisory team can check your numbers and take care of the work, in the UAE and Saudi Arabia.

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