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Enterprise Value Calculator

Last Updated: Jul 23, 2025

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Created by
Saqib Hanif
Saqib Hanif

Saqib Hanif is the CEO and founder of Calculator Value. He builds calculators and educational content across sports, math, and science, and supports a limited set of construction-related calculators. Read full profile

Enterprise Value (EV)

The Enterprise Value measures the total value of a company by including debt and excluding cash. Use the formula below:

Formula

EV = Market Capitalization + Total Debt + Minority Interest + Preferred Equity − Cash & Cash Equivalents

Example

Given:

  • Market Cap: 100,000,000 dollars
  • Total Debt: 30,000,000 dollars
  • Cash & Equivalents: 10,000,000 dollars
  • Minority Interest: 5,000,000 dollars
  • Preferred Equity: 2,000,000 dollars

Calculation:

EV = 100,000,000 + 30,000,000 + 5,000,000 + 2,000,000 − 10,000,000 = 127,000,000 dollars

  • Industry-Standard Formulas: The formulas and methods used in this calculator follow widely accepted standards in Financial.
  • Careful Verification: The calculator is tested to ensure it behaves correctly across a range of inputs.
  • Continuous Updates: The calculator is updated as needed to reflect better accuracy and usability.
Sources:

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Enterprise value (EV) is one of the most important metrics for measuring a company’s total value. EV provides a comprehensive measurement that not only accounts for market capitalization but also includes debt, minority interest, preferred equity, and cash holdings.

In this guide, we will cover:

  • What is Enterprise Value?
  • What Is the Enterprise Value Calculator?
  • How Is Enterprise Value Calculated — Formula
  • A Real-World Example
A businessman calculating enterprise value of a company

What is Enterprise Value?

Enterprise Value (EV) is a measurement of a company’s total valuation. Unlike market capitalization, which focuses only on equity value, EV accounts for short‑term and long‑term debt, minority interests, and preferred equity.

What Is the Enterprise Value Calculator

The Enterprise Value (EV) Calculator is an online tool that is used to calculate enterprise value based on these key input fields:

  • Market Capitalization —  Total share x share price (e.g,. 5 million shares at $20 each price = $100 million)
  • Total Debt — Sum of loans, bonds, and other borrowings amount (e.g., $20 million)
  • Cash & Cash Equivalents — Cash, bank deposits, and marketable securities (e.g., $15 million)
  • Minority Interest — Value of non-controlling stakes (e.g., $5 million)
  • Preferred Equity — Preferred stock value (e.g., $2 million)

As soon as you fill in all fields, the calculator will instantly display the company’s enterprise value.

How Is Enterprise Value Calculated — Formula

The logic behind the enterprise value calculation is straightforward. We subtract cash and equivalents from the sum of market capitalization, total debt, minority interest, and preferred equity. Here is the mathematically formula:

EV = marketCap + totalDebt + minorityInterest + preferredEquity - cashAndEquivalents

To clearly understand, let's walk through a real-world example.

A Real‑World Example

Suppose you want to calculate the EV for a software company. Here is the company’s financial profile:

  • Market Cap: $250 million
  • Total Debt: $80 million
  • Cash & Equivalents: $20 million
  • Minority Interest: $8 million
  • Preferred Equity: $5 million

Let's perform calculation:

EV = $250M + $80M + $8M + $5M − $20M = $323 million

This means someone would need to pay $323 million to buy 100% of the software company.

Frequently Asked Questions

Can I use this for private companies?

It can be difficult to determine market capitalization for private companies because their equity is not publicly traded. Instead, you would need an equity valuation, such as a recent financing round, as a substitute for market capitalization.