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How Is Debt Generated in the Report When Only Revenue and EBITDA Are Provided?

Debt calculation, Financial Plan, no debt from financial plan, only revenue and EBITDA, Net debt financial plan, net debt business plan

Updated yesterday

In Valutico, report outputs are based on the inputs available in the Financial Projections tab. When users only provide Revenue and EBITDA figures, without entering explicit debt values Valutico applies a peer-based benchmarking approach to estimate the missing financial metrics.

Peer-Based Benchmarking of Financial Ratios

If no debt or leverage assumptions are provided, Valutico automatically benchmarks Debt-to-EBITDA ratios from the selected peer group. Specifically:

  • The platform calculates the Debt-to-EBITDA multiple for each peer using their latest financial data.

  • It then applies the median multiple from the peer group to the company’s projected EBITDA.

This enables the system to fill in missing data points with realistic, market-based assumptions, ensuring valuation results remain grounded in comparable company behaviour.

Application in Reports

The estimated debt values appear in the report’s output sections (such as the capital structure breakdown, valuation summary, or debt service ratios) as if they were manually entered. However, they are derived from:

  • The financial projections you’ve entered (e.g. EBITDA).

  • The relative leverage metrics of comparable public companies.

Customisation and Overrides

Users have full control over these assumptions. If you wish to:

  • Enter your own debt figures, you can manually do so within the Financial Projections.

  • Adjust the peer group to reflect different industry or regional dynamics, the resulting benchmarked debt figure will update accordingly.

This flexible approach ensures both accuracy and efficiency, especially in early-stage or high-level valuations where full financial statements may not be available.

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