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Explore your assumptions
Use your own figures. There are no prefilled market rates or valuation multiples.
Complete the inputs to see your scenario.
—The result updates as you change the values.
Calculations stay in your browser. Inputs are not submitted or saved. This tool provides arithmetic, not a valuation, loan quote, clinical staffing plan, or approval.
Key takeaways
- The formula is annual earnings × selected multiple.
- Inputs are yours; no prefilled figure is represented as a current market benchmark.
- The result does not automatically include property or reconcile debt, cash, working capital, liabilities, fees, or taxes.
What does the calculator do?
The formula is normalized annual earnings × your selected multiple = illustrative earnings-based value. The same arithmetic can produce very different results when the underlying definitions change. That is why the segment and earnings measure are shown alongside the output.
The multiple is not estimated from the segment dropdown. Changing from home care to hospice does not secretly apply a different benchmark. The user must provide support for the assumptions. MedPAC's separate provider-sector reporting illustrates why unlike service models should not be collapsed into one earnings comparison. (Source: MedPAC, 2026)
Which earnings should you enter?
Use a clearly defined annual measure for a stated period. Reconcile it to the ledger and other records. Explain owner compensation, management replacement, rent, nonrecurring expenses, and any proposed operational savings. The earnings definitions guide explains the differences.
| Input | What you should verify |
|---|---|
| Segment | The actual services and regulatory model |
| Earnings measure | Which costs have and have not been deducted |
| Normalized earnings | Support for each adjustment |
| Selected multiple | Comparable evidence matching the definition and scope |
An illustrative example
If a user enters annual earnings of $200,000 and a multiple of 3, the arithmetic gives $600,000. These are arbitrary demonstration inputs, not researched valuation ranges, market observations, or a broker opinion. The example says nothing about whether either input is appropriate for a real business.
What is excluded?
The result does not reconcile enterprise value to equity value or cash at closing. Debt, retained cash, purchased receivables, working capital, resident deposits, seller notes, escrows, transaction costs, and tax can change the proceeds. It also does not validate the company's license or enrollment path.
If you use EBITDAR, rent has been excluded. A separate rent and property analysis is necessary. HUD's facility framework reinforces the need to assess the property and operator structure on their actual facts. (Source: HUD, 2026)
How should the result be used?
Compare explicit scenarios and identify the assumptions that deserve further work. Do not present the output as an appraisal, offer, financing commitment, or predicted closing price. Have a CPA review tax and allocation implications, including applicable asset-acquisition reporting. (Source: IRS, 2026)
Frequently asked questions
Where does the multiple come from?
You supply it. A supported multiple requires comparable evidence for the same segment, size, earnings definition, and transaction scope. This tool does not estimate it.
Can I add real estate to the result?
Only after reviewing the valuation method and rent assumption. Adding property to earnings valued before rent can double count the same economic benefit.
What if earnings are negative?
A simple positive earnings-multiple model is not suitable. A turnaround or asset-based analysis may be needed with qualified advisers.
Are my figures sent to Jason?
No. The calculator runs locally in your browser and does not submit or store the inputs. Booking a call is a separate action.
Sources
Sources are dated to distinguish current guidance from earlier publications. They support the identified facts; the transaction questions and examples are educational analysis.
- MedPAC: March 2026 Medicare Payment Policy (2026). Retrieved September 5, 2026.
- HUD: Office of Residential Care Facilities (2026). Retrieved September 5, 2026.
- IRS: Form 8594 (2026). Retrieved September 5, 2026.