Enterprise Value
Calculator
Results
- Enterprise value
- 24,300
- Net debt
- 3,300
- Enterprise value to market cap
- 1.157142
Investing results
| Enterprise value | 24,300 |
| Net debt | 3,300 |
| Enterprise value to market cap | 1.157142 |
formula-map diagram
- Enterprise value
- 24,300
- Net debt
- 3,300
- Enterprise value to market cap
- 1.157142
Investing relationship
Formula
EV = market cap + total debt − cash and equivalents= 24300
Note
This is not investment advice. It is a simplified model: it applies the displayed standard formula to the figures you entered, ignores taxes, fees, currency effects and credit risk, and assumes cash flows arrive exactly as scheduled. Real markets do not behave that way, and past or projected returns do not guarantee future results. Check the assumptions and consult a licensed adviser before acting on any figure.
More in Investing and markets
See all →Frequently asked questions
How is enterprise value calculated?+
Enterprise value equals market capitalization plus total debt, plus minority interest and preferred equity if applicable, minus cash and cash equivalents. It represents the theoretical total cost to acquire the entire business, including assuming its debt.
Why is cash subtracted when calculating enterprise value?+
Cash on the balance sheet effectively offsets the acquisition cost, since a buyer could theoretically use the target's own cash to help pay for the deal (or the cash simply reduces the net price paid), so it's subtracted to reflect this.
Why is debt added rather than ignored in enterprise value?+
An acquirer typically must either pay off or assume the target company's existing debt as part of a purchase, making it an effective cost of acquisition, so it's added on top of the equity value captured by market cap.
When is enterprise value more useful than market capitalization for comparison?+
Enterprise value is more useful when comparing companies with different levels of debt and cash, since two companies with the same market cap can have very different total business values depending on their capital structure — enterprise value normalizes for that difference.
Can enterprise value be negative?+
Yes, though rare — if a company holds significantly more cash than its market cap plus debt combined, enterprise value can turn negative, which sometimes happens with deeply undervalued or cash-rich companies, though it may also reflect market skepticism about the business itself.