Enterprise value is the takeover price of a business: a buyer must pay the shareholders and take on the debt, but gets the cash. It’s the numerator of popular multiples like EV/EBITDA and EV/Sales.
How to use the Enterprise Value Calculator
- Market capitalisation
- Value of debt
- Preferred shares
- Minority interest
- Cash and cash equivalents
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter market capitalisation, debt, preferred shares, minority interest and cash.
Tips
- Take figures from the same financial statements and the same fiscal year.
- Compare ratios with companies in the same industry, not across industries.
- Use several valuation measures together; no single ratio tells the whole story.
- Market prices change every second – refresh the share price before you rely on a result.
Common mistakes to avoid
- Mixing per-share figures with company totals.
- Using trailing earnings for one company and forward earnings for another.
- Forgetting dilution from options and convertible securities.
Inputs explained
| Field | What to enter |
|---|---|
| Market capitalisation | Amount in your currency |
| Value of debt | Amount in your currency |
| Preferred shares | Amount in your currency |
| Minority interest | Amount in your currency |
| Cash and cash equivalents | Amount in your currency |
What each result means
- Enterprise value = [Market capitalisation] + [Value of debt] + [Preferred shares] + [Minority interest] – [Cash and cash equivalents]
- Net debt = [Value of debt] – [Cash and cash equivalents]
- Debt share of EV = [Value of debt]÷[Enterprise value]×100
Example values
How the main result changes when Market capitalisation changes and everything else stays at the example values above:
| Market capitalisation | Enterprise value |
|---|---|
| 2,500,000,000 | 3,500,000,000 |
| 3,750,000,000 | 4,750,000,000 |
| 5,000,000,000 | 6,000,000,000 |
| 6,250,000,000 | 7,250,000,000 |
| 7,500,000,000 | 8,500,000,000 |
| 10,000,000,000 | 11,000,000,000 |
Formula
EV = market capitalisation + total debt + preferred shares + minority interest − cash and equivalentsWorked example
Inputs — Market capitalisation: $5,000,000,000; Value of debt: $1,500,000,000; Preferred shares: $0; Minority interest: $100,000,000; Cash and cash equivalents: $600,000,000.
Results — Enterprise value = $6,000,000,000.00; Net debt = $900,000,000.00; Debt share of EV = 25 %.
Frequently asked questions
What is enterprise value?
The value of a whole company, including debt and excluding cash.
Why subtract cash?
A buyer receives the cash, reducing the effective cost.
Can EV be lower than market cap?
Yes, when a company has more cash than debt.
What formula does the Enterprise Value Calculator use?
EV = market capitalisation + total debt + preferred shares + minority interest − cash and equivalents.