Enterprise Value Calculator
Calculate enterprise value from market capitalization, debt, preferred stock, minority interest and cash.
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Understand this calculation
Enterprise value estimates the value attributable to all major capital providers rather than common equity alone. It adds debt-like claims and subtracts cash from market capitalization.
Formula
Worked example
A $5.0B market cap plus $1.2B debt minus $0.7B cash results in approximately $5.5B enterprise value when other adjustments are zero.
How to interpret the result
Enterprise value helps compare companies with different debt and cash positions. It can be negative for unusually cash-rich companies.
Assumptions & limitations
Definitions vary. Analysts may make additional adjustments for leases, investments, pension obligations or non-operating assets.
Practical context
When this calculator is useful
Enterprise value is useful when you want a broader measure of a business’s market value that incorporates debt and cash rather than looking only at equity market capitalization.
How investors commonly use it
Analysts commonly use EV as the numerator in valuation multiples such as EV/EBITDA or EV/EBIT, particularly when comparing companies with different capital structures.
What this metric does not tell you
Enterprise value is an analytical approximation, not the exact amount required to acquire a company. Debt definitions, preferred securities, minority interests, restricted cash and other adjustments can differ between analyses.