Free calculator · Valuation & Returns
Trading Comps, Multiple → EV → Equity Value
Values a company by trading comparables, applying the median peer EV/Revenue multiple to target revenue and netting out debt to reach equity value. Inputs are three peer multiples, the target company’s revenue, and net debt.
By Devon Coombs, CPA, MBA · Teaching Professor of Finance, Santa Clara University · Reviewed August 2026
From the author: Devon Coombs, CPA, MBA teaches finance at Santa Clara University and works with corporate teams on practical AI.
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Trading Comps, Multiple → EV → Equity Value
Implied equity value
$45M
EV − net debt
Median multiple
8.0×
robust to one outlier
Mean multiple
8.0×
what one outlier drags
Enterprise value
$40M
median × target revenue
The market approach in one chain: peers → median multiple → enterprise value → equity value. Push one peer to an extreme and compare the median against the mean, comp selection, not arithmetic, is where the judgment lives.
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This calculator comes from the free Entrepreneurial Finance course, where the concept is taught with readings, worked examples, and practice questions.
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Built by Devon Coombs, CPA, MBA, Teaching Professor of Finance at Santa Clara University.