Enterprise Value Calculator

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Results

Enterprise value

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What is Enterprise Value ?

Enterprise value combines the market value of equity with financing claims and subtracts cash.

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How to Use This Calculator

  1. Enter or select Market capitalization, Minority interest, Preferred shares, Value of debt, Cash and cash equivalents.
  2. Check the unit beside each measurement. For a percentage or rate, use the scale and time period stated in the form.
  3. Choose Calculate, then compare the output with the formula and example below. If you change a value or option, calculate again to update the result.
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Formula Used

EV = market cap+debt+preferred equity+minority interest−cash
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Variables Explained

InputWhat it means
Market capitalizationUse the measured or stated value for this item, with the unit or category shown beside the field.
Minority interestUse the measured or stated value for this item, with the unit or category shown beside the field.
Preferred sharesUse the measured or stated value for this item, with the unit or category shown beside the field.
Value of debtThe numeric input for the relationship being evaluated.
Cash and cash equivalentsUse the measured or stated value for this item, with the unit or category shown beside the field.
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Worked Example

Market cap 100, debt 30 and cash 10 give EV=120 before other claims.

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Why Use This Calculator?

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.

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Common Mistakes

    • Keep amounts in the same currency and scale; enterprise value and equity value are different measures.
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Frequently Asked Questions

Should I use monthly or annual figures?

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.

Does the result include fees and tax?

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.

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Sources & References