This free Excel pre money post money valuation spreadsheet uses the amount of equity investment required by a startup and the equity percentage negotiated with an investor to calculate the post money valuation and the pre money valuation of the business.
Enterprise Value vs Equity Value
Enterprise value (EV) and equity or market value (MV) are two different terms used in the determination of the value of a business. Enterprise value is the value placed on the net operating assets of a business by all stakeholders, whereas equity value is the value placed on all assets of the business less its net debt by equity holders.
Equity Investment Calculator for Startups
This free equity investment Excel template can be used to estimate the amount of equity which an investor might require in order make an investment in a startup business. The calculator takes into account the return required by the investor and the number of years to exit.
Optimum Capital Structure for a Business
The capital structure of a business is the mixture of equity and debt it uses to finance its operations. The optimum capital structure is one which minimizes the weighted average cost of capital and thereby maximizes the valuation of the business.
Business Valuation Methods
When a business is seeking funding it will usually require a valuation. There are various business valuation models which can be used including PE multiples, assets based and discounted cash flow techniques.
Business Valuation Calculator for a Startup
When a business is seeking investment it needs to decide what percentage of the business it will offer in return for the investment (think dragons den or shark tank).
This simple business valuation calculator allows you to enter the investment and the percentage, and carry out a business valuation analysis to establish the return an investor will make.
PE Multiple Valuation
The PE multiple valuation or PE ratio valuation technique can be used to provide a rough valuation of the equity of a business based on its earnings after interest, tax and depreciation.
The price earnings ratio calculation formula is given a follows: