Enterprise Value Calculator

Calculate the total value of a company including debt, equity, and cash adjustments

Home Categories Financial Enterprise Value Calculator

Quick Examples:

$

Current market price per share

Total number of shares outstanding

$

Short-term + long-term debt obligations

$

Cash, marketable securities, and short-term investments

$

The target enterprise value you want to achieve

$

Value of preferred shares (if any)

$

Non-controlling interests in subsidiaries

EV to Market Cap Ratio

0x (Cash Rich) 1x (Balanced) 2x (Leveraged) 3x+ (Highly Leveraged)

Enterprise Value

Market Cap

Net Debt

EV/Market Cap

Enterprise Value Breakdown

Stock Price $
Shares Outstanding
= Market Capitalization
+ Total Debt
+ Preferred Stock
+ Minority Interest
- Cash & Equivalents
= Enterprise Value

EV/EBITDA Industry Benchmarks

Industry Typical Range

If you like this calculator

Please help us simply by sharing it. It will help us a lot!

Share this Calculator

About Enterprise Value Calculator

What is Enterprise Value (EV)?

Enterprise Value (EV) is a measure of a company's total value, often used as a more comprehensive alternative to equity market capitalization. It represents the theoretical takeover price if a company were to be bought, as it considers both equity and debt while accounting for available cash.

The Enterprise Value Formula

Standard Formula

EV = Market Capitalization + Total Debt - Cash and Cash Equivalents

Expanded Formula

EV = Market Cap + Total Debt + Preferred Stock + Minority Interest - Cash

Where:

  • Market Capitalization = Stock Price × Shares Outstanding
  • Total Debt = Short-term + Long-term debt
  • Cash and Cash Equivalents = Cash, marketable securities, short-term investments
  • Preferred Stock = Value of preferred shares (if any)
  • Minority Interest = Non-controlling interests in subsidiaries

How to Use This Calculator

  1. Select your calculation mode (Enterprise Value, Market Cap, or Required Cash)
  2. Enter the stock price and shares outstanding (or market cap directly)
  3. Enter the company's total debt
  4. Enter cash and equivalents
  5. Optionally add preferred stock and minority interest
  6. View your Enterprise Value result and breakdown

Interpreting Enterprise Value

Metric Interpretation
EV > Market Cap Company has more debt than cash
EV < Market Cap Company has more cash than debt
EV = Market Cap Debt and cash are roughly equal
High EV/EBITDA Potentially overvalued or high growth expected
Low EV/EBITDA Potentially undervalued or mature business

EV/EBITDA Benchmarks by Industry

Industry Typical EV/EBITDA
Technology 15-25x
Healthcare 12-18x
Retail 8-12x
Manufacturing 6-10x
Utilities 8-12x
Financial Services 10-15x

When to Use Enterprise Value

  • M&A Analysis: Determine acquisition price including debt assumption
  • Company Comparison: Compare companies with different capital structures
  • Valuation Multiples: Calculate EV/EBITDA, EV/Sales, EV/EBIT
  • Investment Analysis: Assess if a company is over/undervalued

EV vs Market Capitalization

Enterprise Value

  • Includes debt and subtracts cash
  • Better for acquisition analysis
  • Capital structure neutral
  • More comprehensive valuation

Market Capitalization

  • Only considers equity value
  • Simpler to calculate
  • Ignores debt obligations
  • Depends on capital structure

Limitations of Enterprise Value

  1. Market Volatility: Stock price fluctuations affect EV daily
  2. Debt Complexity: Operating leases, pension liabilities may not be included
  3. Cash Quality: Not all cash may be available (restricted cash)
  4. Industry Differences: EV multiples vary significantly by sector
  5. Point-in-Time: Represents a snapshot, not future potential

Frequently Asked Questions

Why subtract cash from Enterprise Value?

Cash is subtracted because an acquirer gains access to the target's cash, which can be used to pay down the assumed debt, effectively reducing the net cost of acquisition.

What's a good EV/EBITDA ratio?

A "good" ratio depends on industry and growth expectations. Generally, 8-12x is considered average, below 8x may indicate undervaluation, and above 15x may indicate overvaluation or high growth.

How does debt affect Enterprise Value?

Higher debt increases EV because an acquirer must assume these obligations. A highly leveraged company will have a higher EV relative to its market cap.

Note: This calculator provides estimates for educational and analysis purposes. Actual enterprise values may differ based on comprehensive financial analysis. Consult a financial advisor for investment decisions.

Quick Tips

📊 Understanding EV

  • • EV represents total acquisition cost
  • • Includes debt the buyer must assume
  • • Subtracts cash the buyer gains access to

⚠️ Remember

  • • Compare EV within same industry
  • • EV fluctuates with stock price daily
  • • Use EV/EBITDA for relative valuation