In a simplified approach, the value of the operations is adjusted for debt and cash to approximate the value of the shares. The multiple and the adjustments depend on the specific deal.
An example with numbers
With normalized EBITDA of $200,000 and a purely illustrative multiple of 5, enterprise value would be $1,000,000. If you subtract $300,000 of debt and add $80,000 of available cash, the indicative equity value would be $780,000.
Try it with your numbers
Repeat with multiples of 4 and 6 to see the sensitivity. Document whether the cash is truly surplus and which adjustments are still pending.
This calculator is on its way. In the meantime, you can do the calculation on paper or in a spreadsheet.
Example figures for learning purposes. They are not a recommendation and do not replace professional advice.