Enterprise Value Calculator
Calculate Enterprise Value (EV) from market cap, debt, cash, preferred stock, and minority interest. Includes EV/EBITDA, EV/Revenue, operating lease adjustments (ASC 842), compare 3 companies, and EV to equity value bridge.
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Enterprise Value
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Net Debt —
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Extended More scenarios, charts & detailed breakdown ▾
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EV / EBITDA
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EV / Revenue —
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Professional Full parameters & maximum detail ▾
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Enterprise Value
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EV (Adjusted — Leases + Pension) —
Capital Structure
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Equity Metrics
Implied Equity Value per Share
How to Use This Calculator
- Enter Market Capitalization (shares × price), Total Debt, and Cash & Equivalents.
- Optionally add Preferred Stock and Minority Interest.
- Enterprise Value and Net Debt are calculated instantly.
- Use EV Multiples tab to compute EV/EBITDA, EV/EBIT, EV/Revenue.
- Use Compare 3 Companies tab to identify the cheapest by EV/EBITDA.
- Open Professional for lease-adjusted EV and leverage metrics.
Formula
EV = Market Cap + Debt + Preferred + Minority Interest − Cash
Net Debt = Total Debt − Cash
Example
Example: MC = $800M, Debt = $200M, Cash = $50M, Preferred = $0, MI = $0. EV = 800 + 200 − 50 = $950M. With EBITDA = $120M: EV/EBITDA = 7.9x.
Frequently Asked Questions
- Enterprise Value (EV) is the total value of a company regardless of its capital structure: EV = Market Cap + Debt + Preferred Stock + Minority Interest − Cash. EV represents the theoretical takeover price because an acquirer must also assume the debt and can take the cash.
- Cash is a non-operating asset. When you acquire a company, you get its cash too — so effectively the acquisition cost is reduced by the target's cash balance. A company with $100M market cap and $30M cash has an EV of only $70M + debt.
- EV/EBITDA benchmarks vary by industry. Technology: 15–25x. Consumer staples: 10–15x. Industrials: 8–12x. Utilities: 10–14x. Healthcare: 12–18x. A lower multiple can indicate undervaluation, but also higher risk. Always compare within the same industry and growth profile.
- Under ASC 842 (IFRS 16), companies must capitalize operating leases on their balance sheet. Even before this rule, analysts added operating lease debt-equivalents (approx. lease expense × 8) to make EV comparable across companies with different lease vs. own policies.
- Market cap reflects only equity value. EV represents the total firm value to all capital providers. Two companies with identical market caps can have very different EVs if one is highly leveraged. EV/EBITDA is capital-structure-neutral, which is why it's the preferred M&A valuation metric.
Related Calculators
Sources & References (5) ▾
- Damodaran — Enterprise Value and Equity Value — NYU Stern
- CFA Institute — Market-Based Valuation: Price Multiples — CFA Institute
- Valuation — McKinsey & Company — McKinsey / Wiley
- Enterprise Value — Investopedia — Investopedia
- Wall Street Prep — EV Bridge — Wall Street Prep