Investor Valuation Inputs
Use realistic assumptions. Small changes in growth, margin, discount rate, or exit multiple can change the final valuation.
Formula Used
Projected Revenue: Revenue × (1 + Growth Rate)^Year
Free Cash Flow: Projected Revenue × FCF Margin
DCF Enterprise Value: Σ FCFt / (1 + r)^t + Terminal Value / (1 + r)^n
Terminal Value: FCFn × (1 + g) / (r - g)
Revenue Multiple Value: Current Revenue × Revenue Multiple
EBITDA Multiple Value: Current EBITDA × EBITDA Multiple
P/E Value: Current Net Income × P/E Multiple
Equity Value: Enterprise Value - Debt + Cash
Post-Money Valuation: Pre-Money Valuation + Investment Amount
Investor Ownership: Investment Amount / Post-Money Valuation
MOIC: Investor Exit Proceeds / Investment Amount
How to Use This Calculator
Enter current revenue, growth, margins, multiples, and discount assumptions. Add debt and cash to convert enterprise value into equity value. Enter the planned investment amount, target ownership, option pool, and liquidation preference. Press calculate. Review the result cards first. Then compare each valuation method in the chart. Use the detailed table for board notes, pitch updates, or investor discussions. Download the CSV for spreadsheet work. Download the PDF for a quick report.
Example Data Table
| Scenario | Revenue | Growth | FCF Margin | Discount Rate | Investment | Option Pool |
|---|---|---|---|---|---|---|
| Seed SaaS | $800,000 | 45% | 5% | 28% | $350,000 | 12% |
| Growth Marketplace | $2,500,000 | 32% | 8% | 24% | $1,200,000 | 10% |
| Profitable Services | $4,000,000 | 16% | 14% | 18% | $750,000 | 8% |
Investor Valuation Guide
Why Investor Valuation Matters
Investor valuation is more than a headline price. It explains how risk, growth, margin, cash, debt, and ownership work together. Founders use it before fundraising. Investors use it before a term sheet. A clear model helps both sides talk with numbers instead of guesses.
Multiple Methods Give Better Context
No single method is perfect. DCF focuses on future cash flow. Revenue multiples focus on scale. EBITDA multiples focus on operating profit. P/E multiples focus on earnings. A weighted blend is useful because early companies often have uneven margins, fast growth, and uncertain exits.
Dilution Changes the Real Deal
Pre-money valuation is only one part of the offer. The investment amount creates post-money value. New shares reduce existing ownership. An option pool can dilute founders and investors. This calculator shows fully diluted ownership, so the deal can be reviewed with more clarity.
Risk and Exit Returns
Investors care about return potential. A high valuation may still work if exit value is large. A lower valuation may still fail if growth slows. The calculator estimates exit equity value, investor proceeds, MOIC, and annualized return. These outputs help test whether the deal fits a target return profile.
Use Assumptions Carefully
Small input changes can create large valuation swings. Growth rates may fade. Margins may take longer to improve. Discount rates should reflect risk. Multiples should match comparable companies. Use conservative, base, and optimistic cases. Compare results before making funding decisions.
Best Practical Use
Use this calculator during planning, negotiation, and investor reporting. Start with actual revenue. Add realistic growth. Check debt and cash. Review ownership after dilution. Download the report. Then discuss the assumptions, not just the final number. Strong valuation work supports better funding decisions.
FAQs
1. What is investor valuation?
Investor valuation estimates what a business may be worth before and after funding. It uses revenue, cash flow, multiples, debt, cash, dilution, and investor return assumptions.
2. What is pre-money valuation?
Pre-money valuation is the company value before new investment is added. It is used to calculate ownership, share price, dilution, and negotiation terms.
3. What is post-money valuation?
Post-money valuation equals pre-money valuation plus the new investment amount. It shows the company value immediately after the financing round closes.
4. Why does option pool matter?
An option pool reserves shares for employees, advisors, or future hires. It affects fully diluted ownership and can reduce founder or investor percentage ownership.
5. Which valuation method is best?
No method is always best. DCF suits cash flow forecasts. Revenue multiples suit growth companies. EBITDA and P/E methods suit profitable companies.
6. What is MOIC?
MOIC means multiple on invested capital. It compares investor exit proceeds with the original investment amount. A 3x MOIC means triple the invested capital.
7. What is liquidation preference?
Liquidation preference is the minimum payout investors may receive before common shareholders during an exit. It can materially affect founder proceeds.
8. Can this replace professional advice?
No. This tool supports planning and education. For legal, tax, or investment decisions, consult qualified finance, accounting, and legal professionals.