Analyze seller earnings, debt, growth, and service mix. Test scenarios with simple exports and charts. Make better pricing decisions with structured valuation inputs today.
This model combines seller earnings, revenue multiples, asset realization, debt, cash, growth, recurring service income, and risk to estimate a practical HVAC company value.
| Example Metric | Sample Value |
|---|---|
| Annual Revenue | $1,800,000 |
| EBITDA Margin | 14% |
| Owner Salary Add-Back | $120,000 |
| One-Time Add-Backs | $45,000 |
| Maintenance Agreement Revenue | 32% |
| Base SDE Multiple | 2.9x |
| Base Revenue Multiple | 0.62x |
| Interest Bearing Debt | $220,000 |
| Equipment and Vehicles | $280,000 |
| Blended Value Example | Calculated after weighting all methods |
1. EBITDA
EBITDA = Annual Revenue × EBITDA Margin
2. Seller Earnings
SDE = EBITDA + Owner Salary Add-Back + One-Time Add-Backs
3. Risk Adjustment
Risk Adjustment = 1 + (Maintenance % × 0.20) + (Growth % × 0.30) - ((Risk Score - 3) × 0.10)
4. Adjusted Multiples
Adjusted SDE Multiple = Base SDE Multiple × Risk Adjustment
Adjusted Revenue Multiple = Base Revenue Multiple × Risk Adjustment
5. Income Approach
Income Value = (SDE × Adjusted SDE Multiple) - Debt - Other Liabilities + Cash
6. Market Approach
Market Value = (Annual Revenue × Adjusted Revenue Multiple) - Debt - Other Liabilities + Cash
7. Asset Approach
Asset Value = ((Equipment + Inventory + Real Estate) × Asset Realization %) + Cash - Debt - Other Liabilities
8. Final Blended Value
Blended Value = Weighted Average of Income, Market, and Asset Values
This blended method helps owners compare earnings power, market comparables, and hard asset support in one view.
Enter annual revenue and EBITDA margin first. These values create the operating earnings base for the valuation model.
Add owner salary and one-time add-backs next. These adjustments convert reported earnings into seller-focused earnings.
Enter cash, debt, and other liabilities. This step converts enterprise style values into a more practical equity estimate.
Fill in equipment, inventory, and property values. These numbers support the adjusted asset approach.
Set recurring maintenance percentage, growth rate, and risk score. These fields adjust the market and income multiples.
Choose your base SDE multiple, revenue multiple, and valuation weights. Higher weights give more influence to selected methods.
Click calculate. The summary appears above the form, followed by a method table, a chart, and download options.
It estimates an HVAC company’s potential value using income, market, and asset approaches, then blends them with user-selected weights.
Seller earnings capture the cash flow a buyer may control after normalizing owner pay and removing unusual expenses.
It represents recurring service contract revenue. Strong recurring revenue often supports higher valuation confidence and stronger multiples.
Debt and liabilities reduce the equity a buyer receives, so they are deducted after estimating operating or asset value.
Raise it when equipment fleets, inventory, or owned property strongly support value, or when earnings are volatile.
It is useful for screening and planning. Final acquisition pricing still needs due diligence, tax review, and comparable transaction analysis.
The risk score adjusts the multiples. Higher risk lowers adjusted multiples, while lower risk helps preserve valuation strength.
Yes. The calculator is especially helpful for owner-operated HVAC firms because it includes salary add-backs and seller earnings.
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.