$43,750.00

Per month

• This company is raising $1,000,000.00 and giving 20% equity in return.
• Theoretical Valuation (V) = Raised (R) × Equity (E) = $5,000,000.00 USD
• You expect the estimated annual earnings of similar companies to be $525,000.00 USD.
• Multiple (N) = Valuation (V) ÷ Estimated annual earnings (EAE) = 9.523809523809524
• The calculation of the estimated annual earnings (EAE) is subjective and depends on the specific company, industry, and market conditions.
• Required monthly earnings (RME) = (V ÷ N) ÷ 12 = $43,750.00 USD