Enterprise Value Calculator
Calculate total company value including debt and cash for M&A analysis and valuation
Calculate Enterprise Value
Market Capitalization
Total market value of outstanding shares
Debt Components
Short-term + long-term debt
Non-controlling interests in subsidiaries
Value of preferred equity securities
Cash and Cash Equivalents
Liquid assets that can offset debt in acquisition
Enterprise Value Analysis
EV vs Market Cap Analysis
Example Calculation
Company Data
Outstanding Shares: 8.5M
Share Price: $18.45
Market Cap: $156.8M
Total Debt: $143.5M
Cash: $50M
Calculation Steps
1. Market Cap: 8.5M × $18.45 = $156.8M
2. Add Debt: $156.8M + $143.5M = $300.3M
3. Subtract Cash: $300.3M - $50M = $250.3M
Enterprise Value = $250.3M
Key Insights
EV Premium: +59.6% vs market cap
High leverage company
Acquisition cost significantly higher than equity value
Debt makes company more expensive to acquire
Company Size Classifications
Enterprise Value Uses
M&A analysis and valuation
Compare companies with different capital structures
Calculate EV/EBITDA and EV/Sales ratios
Assess true cost of acquisition
More comprehensive than market cap alone
Includes debt burden in valuation
Understanding Enterprise Value
What is Enterprise Value?
Enterprise Value (EV) represents the total value of a company, including both equity and debt. It measures the theoretical takeover price if someone were to acquire the entire company, accounting for debt that must be assumed and cash that can be used to pay down debt.
Why Enterprise Value Matters
- •More comprehensive than market capitalization
- •Accounts for capital structure differences
- •Essential for M&A analysis
- •Enables better company comparisons
Enterprise Value Formula
Enterprise Value =
Market Cap + Debt + Minority Interest + Preferred Shares - Cash
- Market Cap: Equity value (shares × price)
- Debt: Must be assumed by acquirer
- Minority Interest: Non-controlling stakes
- Preferred Shares: Senior equity claims
- Cash: Reduces net acquisition cost
Example: $156.8M market cap + $143.5M debt - $50M cash = $250.3M EV
EV vs Market Cap
- 📊Market Cap: Equity value only
- 🏢Enterprise Value: Total company value
- 💡Use EV for: M&A, valuation ratios
Key Applications
- 🔄M&A Analysis: True acquisition cost
- 📈Valuation Ratios: EV/EBITDA, EV/Sales
- ⚖️Comparisons: Companies with different debt levels
Important Considerations
- ⚠️Debt Impact: Higher debt = higher EV
- 💰Cash Benefit: More cash = lower EV
- 📊Better Metric: For leveraged companies