Enterprise Value Calculator
Compute enterprise value — the true cost to buy a whole business: market cap plus debt and minority interest, minus cash.
How it works
Enterprise value = market cap + total debt + preferred stock + minority interest − cash & equivalents
Enterprise value is what it would really cost to acquire an entire company, not just its shares. You pay the equity (market cap), take on the debt, and assume any preferred stock or minority interests — but you also get the target’s cash, which offsets the price. That is why cash is subtracted. Because it is capital-structure neutral, enterprise value lets you compare businesses with very different mixes of debt and equity on an apples-to-apples basis, and it forms the numerator of multiples like EV/EBITDA and EV/sales.
Worked example
A company has a $20,000,000,000 market cap, $5,000,000,000 of debt, $2,000,000,000 of cash and no preferred or minority interest. Enterprise value is 20,000 + 5,000 − 2,000 = $23,000,000,000.
Frequently asked questions
Why subtract cash from enterprise value?
An acquirer who buys the company also acquires its cash, which can immediately be used to pay down the purchase price. Netting cash out reflects the true economic cost of taking over the business.
How is enterprise value different from market cap?
Market cap values only the equity. Enterprise value adds debt and other claims and removes cash, capturing the total value of the operating business to all its capital providers — which is why it is used for takeover-style comparisons.
Can enterprise value be lower than market cap?
Yes. If a company holds more cash than debt (negative net debt), its enterprise value falls below its market capitalization.
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Educational estimate, not investment advice.