Enterprise Value Calculator (EV)
Enterprise Value (EV) is the full acquisition cost of a business — market cap plus all debt-like claims, minus cash and equivalents. Enter the five components and get EV instantly, along with net debt and an additive breakdown.
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Market Cap + Debt + Preferred + Minority Interest − Cash
- 1
Market cap + debt
500 + 150 = 650 - 2
+ Preferred stock + minority interest
650 + 0 + 0 = 650 - 3
Enterprise Value (− cash)
650 − 50 = 600Cash is subtracted because an acquirer can use it immediately to offset the purchase price.
How does this calculator work?
EV = Market Cap + Total Debt + Preferred Stock + Minority Interest − Cash. A company with a $500 M market cap, $150 M debt, and $50 M cash has EV = $600 M. EV represents the full acquisition cost and is used in EV/EBITDA and other capital-structure-neutral multiples for comparing differently leveraged companies.
Formula
How this is calculated
Enterprise value represents the theoretical total cost of acquiring 100% of a business: what public shareholders are paid for their shares (market capitalisation) plus all outstanding financial obligations, minus the cash a buyer receives immediately after closing. Debt is added because the acquirer assumes those liabilities; cash is subtracted because it can offset the purchase price or repay debt on day one.
Preferred stock is added because preferred shareholders, like debt holders, have a senior claim on assets ranking above common equity. Minority interest — the stake in consolidated subsidiaries owned by outside parties — is included because the enterprise generates earnings from those subsidiaries even though part of the income flows to third-party holders; an acquirer must compensate them to gain full operational control.
EV is most useful as the numerator in capital-structure-neutral valuation multiples: EV/EBITDA (broadly 8–15× for profitable companies, varying widely by sector and growth rate), EV/Revenue, and EV/EBIT. Unlike price-to-earnings (P/E), these multiples are unaffected by the company's chosen debt-vs.-equity mix, making cross-company comparisons more meaningful. All inputs are editable estimates in millions of dollars — enter values in the currency and scale used by the company's financial statements.
Frequently asked questions
Cash is a non-operating asset — the acquirer can use it immediately after the deal to offset the purchase price or repay debt. Subtracting it gives the "net" cost of the operating business. Equivalently: EV = Equity Value + Net Debt, where Net Debt = Total Debt − Cash.
Market value is theoretically correct. For investment-grade companies the book (carrying) value is a widely accepted proxy because it differs little from market. High-yield or distressed debt can trade significantly below par — use quoted market prices where available.
EV/EBITDA varies by industry and market cycle. Broad 2024 reference ranges: technology 15–25×, consumer staples 10–15×, industrials 8–12×, energy and utilities 5–9×. Always compare within the same sector and time period — sector context matters far more than any universal benchmark.
Also known as
TG we-Calculate Editorial Team. (2026). Enterprise Value Calculator (EV) [Online calculator]. TG we-Calculate. https://we-calculate.com/calculator/enterprise-value-calculator
TG we-Calculate Editorial Team. "Enterprise Value Calculator (EV)." TG we-Calculate. 2026. https://we-calculate.com/calculator/enterprise-value-calculator.
TG we-Calculate Editorial Team, "Enterprise Value Calculator (EV)," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/calculator/enterprise-value-calculator
@misc{wecalculate_enterprise_value_calculator, title = {Enterprise Value Calculator (EV)}, author = {{TG we-Calculate Editorial Team}}, howpublished = {\url{https://we-calculate.com/calculator/enterprise-value-calculator}}, year = {2026}, note = {TG we-Calculate} }
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