What is enterprise value?
A measure of firm value equal to equity value plus net debt (simplified).
Enterprise Value Calculator
Combine equity market value with net debt to estimate the value of the whole firm.
Enter market cap, debt, and cash
Market capitalization, interest-bearing debt, and cash (and cash equivalents).
About this calculator
How to use Enterprise Value Calculator, plus the formulas and logic behind the results.
Tool description
Enterprise value (EV) approximates what it would cost to buy the operating business: pay equity holders and take on (or refinance) net debt.
How to use
- Enter equity market capitalization.
- Enter total interest-bearing debt.
- Enter cash and cash equivalents.
- Select Calculate to view EV and net debt.
Formulas & reference
EV = Market cap + Debt − CashNet debt = Debt − Cash
EV uses
- Common in EV/EBITDA multiples
- Useful for comparing firms with different leverage
- Cash reduces net acquisition cost
- Market cap moves with share price
Calculation logic
Debt is added to market cap and cash is subtracted. Preferred stock and minorities are omitted in this simplified educational formula.
Full EV sometimes includes preferred equity, minority interest, and other claims—extend inputs manually if needed.
Enterprise Value Calculator FAQ
Common questions about the calculation and how to interpret the estimate.
Why subtract cash?
Cash can offset debt; buyers effectively acquire net debt, not gross debt.
Is market cap required?
Yes for this equity-based EV shortcut. Price × shares = market cap.
Should operating leases count as debt?
Under some analyses yes; this basic tool uses the debt figure you supply.
Is EV the takeover price?
It is a starting framework, not a negotiated bid.
Can EV be less than market cap?
Yes when cash exceeds debt (net cash position).