My apologies. I missed this earlier.
If I’m not wrong, this is essentially how a Multiples Valuation is done, at least some shade of it. I built a similar tool myself: Practical Thought Valuation Model.xlsx (14.8 KB)
In the end, I feel, a Multiples Valuation is too simplistic. I myself use the tool I’ve built to keep tabs on the Cost of Capital for my investments, but I don’t use it to actually value companies.
I think a Multiples Valuation is fine if your other research/reasons for investing in the company is as good as, say Charlie Munger’s or Prof. Bakshi’s. In absence of this, I find Valuing a company by multiplying two numbers criminal.
So to conclude, yes, your tool works as a great rule of thumb. But that’s exactly what you have to remember as well… it’s just a rule of thumb.