Enterprise Value Calculator
Calculate enterprise value from market capitalization, debt and cash.
How to Use the Enterprise Value Calculator
Enter market capitalization, total debt, preferred stock and cash or cash equivalents. The calculator estimates enterprise value, a capital-structure-neutral measure of company value.
Practical Example
If market capitalization is USD 50 million, debt is USD 12 million and cash is USD 7 million, enterprise value is about USD 55 million before any preferred stock adjustment.
Factors That Affect Enterprise Value
Share price, shares outstanding, debt balances, cash holdings, preferred equity and acquisitions can all change enterprise value.
Frequently Asked Questions
What is the basic formula?
EV = Market Cap + Debt + Preferred Stock − Cash.
Why subtract cash?
Cash reduces the effective purchase cost of the operating business.
Is enterprise value the same as market cap?
No. EV also reflects debt and cash.
Enterprise Value vs. Equity Value
Enterprise value is designed to represent the value of the operating business available to capital providers, commonly starting with equity value and adjusting for debt and cash. Exact adjustments can also include preferred stock, minority interests or other non-operating items depending on the analysis.