01
Formula
Earnings value = earnings × multiple.
Asset residual = tangible assets − debt. Show both. They will not match, and they do not have to. A buyer may weigh earnings. A lender on equipment looks at the machine, not at this page.
Apply for financingEducational only
Business valuation calculator from earnings or assets
This business valuation calculator multiplies discretionary earnings by a multiple you choose, and separately subtracts debt from tangible assets. A dental practice valuation calculator uses the same two illustrations. Neither number is an appraisal. Dengaro arranges equipment financing for the shop or the practice.
Earnings multiple
$540,000.00
Asset minus debt$250,000.00
Multiple3.00
Not an appraisalTwo illustrations only
Educational illustration only. Dengaro is a brand of Funding Routes LLC and is not the lender. Dengaro arranges equipment financing. Any rate or figure is an assumption you set, not a quote.
How it works
A multiple and an asset residual answer different questions.
Earnings value equals the earnings you type times the multiple you type. Asset residual equals tangible assets minus debt. $180,000 of earnings at a multiple of 3 is $540,000. $400,000 of assets minus $150,000 of debt is $250,000. The multiple is the entire judgment, and this page does not supply a correct one. Goodwill, a patient chart, a noncompete, and inventory method can move a real valuation. Dengaro is a brand of Funding Routes LLC. It arranges equipment financing. Neither illustration is an approval.
02
Example
$180,000 of earnings at 3, and $400,000 of assets less $150,000.
The earnings illustration is $540,000. The asset illustration is $250,000. Change the multiple and only the first number moves. The multiple of 3 is a placeholder, not a market comp and not a Dengaro opinion.
03
Limit
Do not treat this as a dental practice appraisal.
A dental practice valuation calculator on this page is the same arithmetic. Charts, equipment schedules, and a broker's opinion are not in the form. Hire an appraiser if you need one. Dengaro arranges equipment financing.
04
Equipment
Buying the equipment is a different request.
If the next step is a machine for the shop or the practice, the button opens equipment financing. The valuation is not sent as the loan amount.
Important questions
Know what to expect.
Is this an appraisal?+
No. It multiplies and subtracts the numbers you enter. Dengaro arranges equipment financing for the shop or the practice.
Which multiple should I use?+
This page will not tell you. Multiples depend on the industry, the earnings definition, and the buyer. Type the multiple you are studying and label it as yours.
What earnings number goes in the first field?+
Use a defined figure, such as seller's discretionary earnings, and use it consistently. Mixing revenue and profit will not produce a meaningful multiple.
Can Dengaro finance the practice purchase?+
Dengaro arranges equipment financing. The button is for equipment, and this valuation is not sent as the amount.
Equipment financing