Enterprise Value Calculator
Find enterprise value from market cap, debt and cash.
Results update as you type.
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How it works
Enterprise value, or EV, represents the total value of a business as a whole, capturing what it would really cost to buy the entire company rather than just its shares. This enterprise value calculator starts with market capitalization, adds total debt, and subtracts cash and cash equivalents. The logic is that an acquirer purchasing a company takes on its debts, which must be repaid, so debt increases the effective price, while any cash on the balance sheet can be used to offset the cost, so it reduces the price. EV is therefore a more complete measure of value than market cap alone, and it is capital-structure neutral, meaning it lets you compare companies regardless of how they are financed. This makes it the numerator of choice in valuation multiples such as EV to EBITDA and EV to sales, which analysts prefer over price-to-earnings when comparing firms with different debt levels. A company with a modest market cap but heavy borrowings can have a large enterprise value, revealing that acquiring it is more expensive than the share price suggests. Enter market cap, total debt, and cash to see the full picture of what the business is worth.
EV = market cap + total debt − cash
Enterprise value measures the total cost of acquiring an entire business, not just its equity. You start with market capitalization, the value of the shares, add total debt because an acquirer must repay or assume it, and subtract cash and equivalents because that cash effectively reduces the net price. The result is what it would truly cost to buy the whole company free and clear of its existing capital structure.
Source:Corporate valuation
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Worked example
How to use this calculator
- 1
Enter your values
Enter market capitalization, total debt and cash & equivalents.
- 2
Adjust the options
Fine-tune any options to match your situation.
- 3
Read your result
Enterprise value updates instantly as you type — no button to press.
Frequently asked questions
What is enterprise value?
Enterprise value is the total value of a business, representing the theoretical cost to acquire the entire company. It equals market capitalization plus total debt minus cash and equivalents. Unlike market cap, which values only the equity, enterprise value accounts for the debt an acquirer would assume and the cash they would gain, giving a fuller picture of what buying the whole firm really costs.
Why add debt and subtract cash?
When you buy a company, you inherit its debts and must repay or refinance them, so debt adds to the true purchase cost. Meanwhile, the cash on its balance sheet becomes yours and can be used to reduce the net outlay, so cash is subtracted. Together these adjustments turn the equity value into the full cost of owning the business outright.
How is EV different from market cap?
Market cap measures only the value of a company's shares, while enterprise value adds net debt to reflect the total cost of acquiring the whole business. Two companies with the same market cap can have very different enterprise values if one carries much more debt. EV is the more appropriate measure when comparing takeover costs or valuing firms with different capital structures.
What are EV multiples used for?
Analysts divide enterprise value by measures like EBITDA or revenue to create valuation multiples that compare companies fairly regardless of how they are financed. EV to EBITDA is especially popular because both the numerator and denominator are unaffected by capital structure and tax differences, making it a cleaner cross-company comparison than the price-to-earnings ratio in many situations.
Can enterprise value be lower than market cap?
Yes. If a company holds more cash and equivalents than its total debt, subtracting that net cash makes enterprise value fall below market capitalization. This happens with cash-rich, low-debt firms, notably some technology companies. A negative net debt position means part of the purchase price would effectively be returned to the buyer as cash on acquisition.