Enterprise Value Calculator
Bridge from equity value to enterprise value by adding debt and other claims and subtracting cash.
Enterprise Value Calculator
Enterprise Value (EV)
—
Equity Value (Market Cap)
—
Net Debt (Debt − Cash)
—
EV / EBITDA
—
EV / Revenue
—
Bridge: equity value to enterprise value
Assumptions & method
- Formula: EV = Equity value + Total debt + Preferred stock + Minority interest + Other claims − Cash & equivalents − Non-operating assets.
- Equity value (market cap) = share price × diluted shares outstanding, or the value you enter directly.
- Minority interest is added because consolidated earnings and revenue include 100% of partly owned subsidiaries. Preferred stock is added because it ranks ahead of common equity.
- Other claims are debt-like items you decide to include, such as lease liabilities or pension deficits. Non-operating assets are items outside the core business that you decide to deduct. Keep this treatment consistent with the earnings measure you compare against.
- EV/EBITDA and EV/Revenue are shown only when the optional input is greater than zero; otherwise they are shown as not meaningful. Use EBITDA and revenue for a matching period, such as the last twelve months.
- Book values for debt and claims are used as given. Market values of debt, convertible instruments, options and timing differences between balance sheet and price dates are not adjusted for.
- Enter all amounts in the same currency and the same unit (for example, all in rupees, not a mix of rupees and crores).
Results are educational estimates based on the figures you enter. They are not valuations, guarantees or investment advice.
What is enterprise value?
Imagine buying a whole company. You would pay the shareholders for their equity, take over the debt, honour preferred and minority claims, and then get to keep any cash on the balance sheet. Enterprise value is that takeover price in concept. Because it sits before the split between lenders and owners, it lets you compare companies with very different amounts of debt, and it pairs naturally with operating measures such as EBITDA and revenue, which are earned before interest. The bridge shows each step from equity value to EV so you can see which items move the answer most. Different analysts treat leases, pensions and investments differently, so always state your treatment when comparing multiples.