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Enterprise Value (EV) represents the theoretical total cost to acquire a company outright — its market value, plus the debt an acquirer would take on, minus the cash they'd immediately receive. It's a more complete measure of a company's total value than market capitalization alone.
How it works
Enter market capitalization, total debt, and cash and cash equivalents, and the calculator applies EV = Market Cap + Total Debt − Cash and Equivalents.
- Enter market capitalization ($).
- Enter total debt ($).
- Enter cash and cash equivalents ($).
- Click Calculate to see your results.
Examples
Debt raises EV, cash lowers it
A company with a $10,000,000 market cap, $3,000,000 of debt, and $1,000,000 of cash has an enterprise value of $12,000,000 — an acquirer would take on the debt but immediately recoup the cash.
Who should use it
- Computing EV/EBITDA or other enterprise-value-based valuation multiples.
- Comparing total company value across businesses with different debt levels.
Industry applications
- Investment banking and M&A analysis
- Investment analysis and equity research
Advantages
- Gives a fuller picture of total company value than market cap alone.
- Standard input for widely-used valuation multiples (EV/EBITDA, EV/Revenue).
Limitations
- Requires accurate, current debt and cash figures — stale balance sheet data will skew the result.
Common mistakes to avoid
- Confusing enterprise value with market capitalization — they answer different questions and can differ substantially for heavily indebted or cash-rich companies.
- Forgetting to subtract cash, which overstates the real acquisition cost.
Best practices
- Use EV (not market cap) as the numerator when computing valuation multiples meant to be compared across companies with different capital structures.
- Use total debt figures from the most recent balance sheet for an accurate, current EV.
Tips
- Feed this calculator's result straight into the EV/EBITDA Calculator for a complete valuation-multiple workflow.