All business decision tools

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$10,640,000

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.

Turn the number into a decision.

Explore the relevant service

Explore all 200 business decision tools