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Where does the change in equity value come from?
Decompose revenue, margin, multiple, and net-debt effects without double counting.
Example scenario
Editable demonstration inputs, not verified industry benchmarks. Enable JavaScript to calculate your own scenario.
- Entry annual revenue
- $10,000,000
- Entry EBITDA margin
- 15 %
- Entry EBITDA multiple
- 6 ×
- Exit annual revenue
- $14,000,000
- Exit EBITDA margin
- 18 %
- Exit EBITDA multiple
- 7 ×
- Entry net debt
- $4,000,000
- Exit net debt
- $2,000,000
Change in modeled equity value
Example result only, not a forecast or promise.
- Entry equity value
- $5,000,000
- Exit equity value
- $15,640,000
- Equity value multiple
- 3.1×
What to do with this result
Separate operating improvements, market multiple changes, and debt reduction, then stress-test exit timing and transaction costs.
Know what is inside the model.
Planning model, not personalized financial advice. Your inputs remain in your browser.
Calculation method
Revenue effect = Δrevenue × entry margin × entry multiple. Margin effect = exit revenue × Δmargin × entry multiple. Multiple effect = exit EBITDA × Δmultiple. Net-debt effect = entry net debt − exit net debt.
Assumptions and limitations
- Sequential bridge: revenue first, then margin, then multiple; attribution depends on this order.
- No dividends, add-on equity, transaction fees, dilution, or interim distributions.
- Multiples are hypothetical inputs, not market benchmarks.