Enterprise Value (EV) Calculator

Calculate the total value of a company's business operations, inclusive of both equity and debt, minus surplus cash.

Capital Structure

Equity Market Cap

Total Debt

Cash & Equivalents

Preferred Stock

Minority Interest

Total Valuation

Enterprise Value$1,200,000Operations + Debt Value

Enterprise Value Bridge

Overview

Calculate the total value of a company's business operations, inclusive of both equity and debt, minus surplus cash.

💡

Pro Tips

What is Enterprise Value?: Enterprise Value (EV) is a comprehensive measure of a company's total value. It is essentially the price an acquirer would have to pay to buy the entire business, as they would take on the debt and keep the cash.
Why use EV instead of Market Cap?: Market Cap only tells you what the equity is worth. EV accounts for the company's debt level. A company with $1B market cap and $1B debt is much more expensive to acquire than one with $1B market cap and no debt.
Why is cash subtracted?: Cash is subtracted because, in an acquisition, the buyer can use the company's own cash to immediately pay down some of the purchase price.

Fun Facts

"Enterprise Value is the 'EV' in the popular 'EV/EBITDA' valuation multiple."
"Negative EV is possible! It happens when a company has more cash than its market cap and debt combined, essentially meaning you get 'paid' to take over the business."
"EV is often referred to as the 'theoretical takeover price'."

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Enterprise Value (EV) Calculator

Calculate the total value of a company's business operations, inclusive of both equity and debt, minus surplus cash.

Capital Structure

Equity Market Cap

Total Debt

Cash & Equivalents

Preferred Stock

Minority Interest

Total Valuation

Enterprise Value$1,200,000Operations + Debt Value

Enterprise Value Bridge

Overview

Calculate the total value of a company's business operations, inclusive of both equity and debt, minus surplus cash.

💡

Pro Tips

What is Enterprise Value?: Enterprise Value (EV) is a comprehensive measure of a company's total value. It is essentially the price an acquirer would have to pay to buy the entire business, as they would take on the debt and keep the cash.
Why use EV instead of Market Cap?: Market Cap only tells you what the equity is worth. EV accounts for the company's debt level. A company with $1B market cap and $1B debt is much more expensive to acquire than one with $1B market cap and no debt.
Why is cash subtracted?: Cash is subtracted because, in an acquisition, the buyer can use the company's own cash to immediately pay down some of the purchase price.

Fun Facts

"Enterprise Value is the 'EV' in the popular 'EV/EBITDA' valuation multiple."
"Negative EV is possible! It happens when a company has more cash than its market cap and debt combined, essentially meaning you get 'paid' to take over the business."
"EV is often referred to as the 'theoretical takeover price'."

Used with this

Similar tools that might be useful

AFFO Calculator

Calculate Adjusted Funds From Operations (AFFO), a key performance metric for Real Estate Investment Trusts (REITs).

AFN (Additional Funds Needed) Calculator

Determine the amount of external funding a business needs to support a projected increase in sales.

ARV Calculator (House Flipping)

Calculate After Repair Value and determine the maximum offer price using the 70% rule for real estate investors.