Enterprise value combines the market value of equity with financing claims and subtracts cash.
Enterprise value combines the market value of equity with financing claims and subtracts cash.
| Input | What it means |
|---|---|
| Market capitalization | Use the measured or stated value for this item, with the unit or category shown beside the field. |
| Minority interest | Use the measured or stated value for this item, with the unit or category shown beside the field. |
| Preferred shares | Use the measured or stated value for this item, with the unit or category shown beside the field. |
| Value of debt | The numeric input for the relationship being evaluated. |
| Cash and cash equivalents | Use the measured or stated value for this item, with the unit or category shown beside the field. |
Market cap 100, debt 30 and cash 10 give EV=120 before other claims.
Compare the result with the underlying statement, budget or proposed transaction. It is most useful when every amount uses the same reporting period and the same accounting definition.
Use one consistent period for every amount and rate in the relationship. If a form specifies an annual rate or a monthly amount, follow that label rather than mixing time periods.
Only the costs and taxes represented by the inputs and formula are included. A real transaction can include other charges, so compare the estimate with the underlying agreement or statement.