Enterprise Value Calculator
Calculate enterprise value from market cap, debt, and cash. Compare EV vs market cap, or analyse EV/EBITDA and EV/Revenue multiples against industry benchmarks. Works with any currency.
▶Advanced inputs (minority interest, preferred equity)
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How to Use This Calculator
Tab "Calculate EV"
Enter your company's market capitalisation (share price times shares outstanding), total debt (short-term plus long-term), and cash and equivalents. Optionally expand the advanced section to add minority interest and preferred equity. The calculator shows the full enterprise value and a breakdown of each component.
Tab "EV vs Market Cap"
Enter the same market cap, debt, and cash to see a side-by-side visual comparison of market capitalisation versus enterprise value. The bar chart shows how debt increases and cash decreases the true acquisition cost relative to equity value alone.
Tab "EV Multiples"
Enter an enterprise value, annual revenue, and annual EBITDA to calculate EV/Revenue and EV/EBITDA multiples. Select an industry to see how your multiples compare against sector medians. The EBITDA margin is also displayed.
The Formulas
EV = Market Cap + Total Debt - Cash & Equivalents + Minority Interest + Preferred Equity
Net debt adjustment:
Net Debt = Total Debt - Cash & Equivalents
EV/Revenue multiple:
EV/Revenue = Enterprise Value / Annual Revenue
EV/EBITDA multiple:
EV/EBITDA = Enterprise Value / Annual EBITDA
EBITDA margin:
EBITDA Margin = (EBITDA / Revenue) × 100
All calculations are universal and currency-agnostic. Industry benchmarks are approximate sector medians and may vary by source and time period.
Worked Examples
Example 1 — Large cap with significant debt: $75B market cap
A large company has a $75 billion market capitalisation, $15 billion in total debt, and $10 billion in cash. No minority interest or preferred equity.
The enterprise value of $80 billion is $5 billion more than market cap. An acquirer would pay $75 billion for the equity, assume $15 billion of debt, but receive $10 billion in cash — a net true cost of $80 billion.
Example 2 — Cash-rich tech company: $200B market cap, $40B cash
A major tech company with $200 billion market cap holds $40 billion in cash and only $5 billion in debt.
The enterprise value of $165 billion is $35 billion less than market cap. The company's massive cash pile reduces the effective acquisition price. Buyers effectively get $35 billion in net cash back.
Example 3 — EV multiples: $80B EV, $20B revenue, $8B EBITDA
An enterprise with $80 billion EV generates $20 billion in annual revenue and $8 billion in EBITDA.
At 10.0x EV/EBITDA and 4.0x EV/Revenue, the company trades below the technology sector median (~25x EV/EBITDA), which could indicate undervaluation or a more mature business with slower growth expectations.
Understanding Enterprise Value
What Is Enterprise Value?
Enterprise value represents the total price tag of a company — what it would cost to acquire the entire business. Unlike market capitalisation, which only measures the equity portion, EV accounts for the complete capital structure: equity, debt, and cash. Think of it as the price you would pay to buy all equity, take on all debt, and pocket all cash.
Why EV Matters More Than Market Cap
Two companies can have identical market caps but vastly different enterprise values. A company with $50 billion in market cap and $30 billion in debt has a much higher true cost than one with the same market cap but $20 billion in cash. EV normalises for capital structure, making it the preferred metric for company-to-company comparisons, M&A analysis, and valuation multiples.
EV/EBITDA: The Go-To Valuation Multiple
EV/EBITDA is the most widely used valuation multiple in corporate finance and investment banking. It compares the total value of a business to its operating cash flow proxy (EBITDA). Because it uses EV rather than market cap and EBITDA rather than net income, it is capital-structure-neutral and not distorted by depreciation policies, tax rates, or interest expenses.
When to Use EV/Revenue Instead
EV/Revenue is useful for companies with negative or negligible EBITDA — typically high-growth startups, pre-profit tech companies, or businesses going through a heavy investment phase. It is also common in SaaS valuation, where recurring revenue multiples are a standard metric.
Components Explained
Market cap is the equity value: share price times shares outstanding. Total debt includes all interest-bearing liabilities (bank loans, bonds, lease obligations). Cash and equivalents covers liquid assets that could immediately reduce the acquisition cost. Minority interest is the portion of subsidiaries not owned by the parent. Preferred equity sits between debt and common equity in the capital structure.