What is Enterprise Value Scenario Engine (EV-SE)?
The Enterprise Value Scenario Engine is Richard Ewing's tool for modeling how technical decisions affect company valuation.
The Enterprise Value Scenario Engine is Richard Ewing's tool for modeling how technical decisions affect company valuation. It connects engineering metrics to the financial multipliers that determine enterprise value.
The EV-SE models the relationship between: ARR multiples and technical health, gross margin impact of AI costs, revenue retention and technical debt, engineering efficiency and EBITDA, and technical risk factors on deal pricing.
The tool provides scenario analysis: "If we reduce technical debt by 30%, what happens to our valuation multiple? If AI costs grow 15% per quarter, what's the impact on gross margins by Year 3?"
For PE/VC firms, the EV-SE quantifies the post-acquisition technology investment required and models the return on that investment. It answers: "What's the true technology cost of this acquisition beyond the purchase price?"
Why It Matters
Technical decisions directly impact enterprise value — but most organizations can't model the relationship. The EV-SE bridges the gap between engineering metrics and financial outcomes.
Frequently Asked Questions
What is the EV-SE?
The Enterprise Value Scenario Engine models how technical decisions (debt reduction, AI costs, engineering efficiency) affect company valuation multiples and financial outcomes.
Who uses the EV-SE?
CTOs and CFOs modeling technology investment ROI, PE/VC firms evaluating acquisitions, and boards assessing the financial impact of engineering decisions.
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Need Expert Help?
Richard Ewing is a Product Economist and AI Capital Auditor. He helps companies translate technical complexity into financial clarity.
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