Enterprise Value Calculator
Calculate a company's enterprise value (EV).
$
Share price * shares outstanding
$
Short-term + long-term debt
$
$
$
EV = Market Cap + Total Debt + Preferred Stock + Minority Interest - Cash
Example: $500M market cap + $100M debt - $20M cash = $580M enterprise value. EV/EBITDA of 10* with $58M EBITDA
What is Enterprise Value?
Enterprise Value (EV) represents the total value of a company, including both equity and debt. It's what an acquirer would theoretically pay to buy the entire business.
Why subtract cash from EV?
Cash is subtracted because an acquirer could use the company's cash to pay off debt, effectively reducing the purchase price.
How is EV used in valuation?
EV is used in ratios like EV/EBITDA, EV/Revenue, and EV/EBIT to compare companies regardless of capital structure.
📐 Formula
EV = Market Cap + Total Debt + Preferred Stock + Minority Interest - Cash
📝 Example Calculation
Example: $500M market cap + $100M debt - $20M cash = $580M enterprise value. EV/EBITDA of 10* with $58M EBITDA
❓ Frequently Asked Questions
What is Enterprise Value?▼
Enterprise Value (EV) represents the total value of a company, including both equity and debt. It's what an acquirer would theoretically pay to buy the entire business.
Why subtract cash from EV?▼
Cash is subtracted because an acquirer could use the company's cash to pay off debt, effectively reducing the purchase price.
How is EV used in valuation?▼
EV is used in ratios like EV/EBITDA, EV/Revenue, and EV/EBIT to compare companies regardless of capital structure.