# EBITDA Multiple Valuator MCP > EBITDA Multiple Valuator uses sector benchmarks to calculate a company's total worth. It estimates Enterprise Value (EV)—the whole business—and Equity Value, which is what belongs to the shareholders. The tool handles growth adjustments and accounts for net debt structure using industry-specific multiples. ## Overview - **Category:** finance - **Price:** Free - **Tags:** ebitda, valuation, enterprise-value, equity-value, scaleup ## Description This MCP gives you an engine for valuing profitable scaleups. When you need to know how much a company is worth, simply looking at revenue isn't enough. This valuation process uses EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) combined with current market norms for the industry—like SaaS or Fintech. It builds out two critical figures: the total enterprise value of the firm and the resulting equity value available to owners. The system adjusts these numbers based on growth rates and complex factors like net debt. If you're building a valuation model, accessing this capability through Vinkius makes sure you have access to reliable financial tools alongside your preferred AI client. ## Tools ### calculate_enterprise_value Determines the total worth of a business using current EBITDA data and growth adjustments. ### calculate_equity_value Calculates the net value that belongs specifically to shareholders by subtracting debt from the enterprise value. ### get_sector_multiples Pulls standard valuation multiples for specific industries, like SaaS or Fintech, providing market context. ## Prompt Examples **Prompt:** ``` What is the enterprise value for a SaaS company with $5M EBITDA TTM and 20% growth? ``` **Response:** ``` Based on the SaaS sector multiplier, the estimated Enterprise Value is $15,000,000. ``` **Prompt:** ``` Calculate equity value for a company with $10M EV and $2M net debt. ``` **Response:** ``` The calculated Equity Value is $8,000,000. ``` **Prompt:** ``` Show me the current multiples for all sectors. ``` **Response:** ``` The baseline multiples are: SaaS (15.0), Fintech (12.0), Marketplace (10.0), and Healthtech (11.0). ``` ## Capabilities ### Determine baseline market multipliers Retrieves the current standard valuation multiples for key industries like Healthtech and Marketplace. ### Calculate total enterprise value (EV) Computes the full worth of a business, factoring in growth rates applied to EBITDA TTM. ### Determine shareholder net equity value Calculates the precise amount remaining for owners after deducting all outstanding debt from the total enterprise value. ## Use Cases ### Determining M&A bid price An investment banker needs to estimate a target company's worth. They run the initial valuation using `get_sector_multiples` for context, then use `calculate_enterprise_value` to get the total firm value, giving them a solid range for their offer. ### Structuring an IPO A CFO needs to present the true ownership stake during an Initial Public Offering. They run the numbers through `calculate_equity_value` to show exactly what shareholders will own after debt is addressed. ### Venture Deal Due Diligence A VC analyst has EBITDA TTM for a promising startup. They use `get_sector_multiples` to confirm the industry norm, then run `calculate_enterprise_value` to determine if the asking price is reasonable. ### Analyzing Debt Impact A financial planner needs to know how much equity is left for owners. They input the total worth and net debt into `calculate_equity_value` to show clear shareholder returns, ignoring complex financing details. ## Benefits - Avoid guesswork. You get immediate access to industry benchmarks via `get_sector_multiples`, ensuring your valuation uses current, relevant multiples for the sector. - Understand the full picture with `calculate_enterprise_value`. This tool gives you the total worth of the firm before factoring in who holds the debt or equity. - Pinpoint shareholder ownership. Using `calculate_equity_value` lets you see the actual net value available to owners, accounting for all liabilities. - Account for growth complexity. The system adjusts calculations using projected growth rates, so your valuation isn't stuck on old numbers. - Reconcile multiple views. You can use `get_sector_multiples` as a sanity check against the final figures from both `calculate_enterprise_value` and `calculate_equity_value`. ## How It Works The bottom line is you get professional-grade financial analysis that handles complex debt and growth adjustments automatically. 1. Start by providing the core financial metric, usually the EBITDA TTM. 2. The MCP first pulls current sector multiples to set a baseline for valuation context. 3. You then run either the enterprise value calculation or the equity value calculation, getting a precise dollar figure back. ## Frequently Asked Questions **What does calculate_enterprise_value do?** It determines the total worth of a business. It takes your core financials and adjusts them for growth rates to give you the full enterprise value (EV). **How does calculate_equity_value work?** This tool calculates what’s left for owners. It starts with the total worth and subtracts all outstanding debt, giving you the precise shareholder equity value. **Do I need to use get_sector_multiples first?** No, but it's smart practice. Running `get_sector_multiples` first gives you a vital benchmark. It ensures your final calculations fall within the plausible range for that industry. **Can I use calculate_enterprise_value with different growth rates?** Yes, it's designed to handle growth rate adjustments. This lets you model how future expansion impacts the total worth of the firm. **When using calculate_enterprise_value, does the EBITDA TTM need to be reported in a specific currency?** Yes. The model requires the EBITDA TTM figure and its associated currency code (e.g., USD) for accurate valuation. If you omit the currency, the calculation will fail. **I need to confirm my industry's baseline before valuing it; how do I use get_sector_multiples?** The `get_sector_multiples` tool provides a list of all supported sectors, including SaaS, Fintech, and Healthtech. This output shows the current benchmark multipliers you must reference. **If I run calculate_equity_value and the company has zero net debt, what should I expect?** The calculation will use the full Enterprise Value figure as the basis for shareholder equity. The result simply equals the EV because there's no debt to subtract. **Can calculate_enterprise_value handle a negative EBITDA TTM input?** Yes, it processes negative numbers, but be aware that valuation using negative metrics changes the financial interpretation significantly. Always confirm with an accountant before proceeding.