Excel Template for EBITDA Multiple Valuation Method

I tried to take the most important aspects of a valuation that uses EBITDA multiple as its method to reach a given enterprise value. In doing so, the result has been this excel template. The idea here was to make something that the user could easily use as a plug in play once they have their own financial statements.




Pricing


*You will be taken to a template download page after purchase.

Functionality of this valuation model:
  • Pick 3 or 5 years as a drop down function.
  • All cells that can be changed are in blue or red.
  • Allows for a subjective weighting of each years EBITDA.
  • Gives two sets of enterprise values based on two different weightings of each year's EBITDA.
  • Also, allows you to change the multiple in each EV calculation.
  • Drills down to equity value by calculating any redundant assets less bank loans/liabilities to a 3rd party that need to be paid.
  • Includes a chart to visualize primary enterprise values.
Excel is a really nice tool to use for so many different financial models. Normally my templates involve projecting out cash flow over time but this particular valuation is more about taking the past cash flows and assigning a value to them.

The most subjective parts of this would be the weighting of each years' EBITDA and then the multiple itself. Note that all the multiple is saying is how many years are you paying for now. This assumes the business will keep earning somewhere around the normalized EBITDA that has been calculated with the weighted averages.

The buying party would obviously hope that this increases and the seller is hoping that they can do more with the cash now rather than weighting for it to come through the normal course of business.

It is a battle here to try and find a price both party's agree on and many more factors are there to consider besides what you see in the excel template.

Disclaimer: I am not a financial advisor nor hold any license as a Certified Valuation Analyst. This is just my way of helping business start to see what they might get from there business at a basic level. I am not to be held liable for any financial gain/loss that comes with the use of this valuation template in excel.

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