{
  "id": "enterprise-value",
  "version": "6507d7880334",
  "status": "published",
  "name": "Enterprise Value Calculator",
  "question": "What is the enterprise value?",
  "summary": "Computes enterprise value (EV): market capitalization plus debt, preferred stock and noncontrolling interests, minus cash, with net debt and EV/EBITDA.",
  "category": "finance",
  "subcategory": "investing",
  "url": "https://www.acalculator.org/finance/enterprise-value-calculator",
  "markdown": "https://www.acalculator.org/finance/enterprise-value-calculator.md",
  "kind": "function",
  "method": "Market cap = share price × shares outstanding. Enterprise value = market cap + total debt + preferred stock + noncontrolling interests − cash and cash equivalents. EV/EBITDA = enterprise value ÷ EBITDA.",
  "assumptions": [
    "Market values are best; book values of debt and preferred stock are the usual stand-in when no market price exists.",
    "Debt is interest-bearing borrowing, not accounts payable; an empty preferred stock or noncontrolling interests box counts as $0.",
    "Arithmetic is exact on the decimals you type; money shows to the cent and EV/EBITDA to 2 decimals, halves up."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "from": {
        "title": "I know the",
        "description": "Whether you know the share price and the number of shares, or the market capitalization itself.",
        "type": "string",
        "enum": [
          "price",
          "cap"
        ]
      },
      "price": {
        "title": "Share price",
        "description": "The market price of one common share.",
        "type": "number",
        "x-unit": "USD",
        "exclusiveMinimum": 0,
        "maximum": 1000000000000000
      },
      "shares": {
        "title": "Shares outstanding",
        "description": "The number of common shares held by investors.",
        "type": "number",
        "exclusiveMinimum": 0,
        "maximum": 10000000000000
      },
      "cap": {
        "title": "Market capitalization",
        "description": "The market value of all common shares: share price × shares.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000000
      },
      "debt": {
        "title": "Total debt",
        "description": "Short-term and long-term borrowing, including the current part of long-term debt.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000000
      },
      "pref": {
        "title": "Preferred stock",
        "description": "The value of preferred shares, a claim ahead of the common shares. Optional.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000000
      },
      "nci": {
        "title": "Noncontrolling (minority) interests",
        "description": "The part of subsidiaries the company consolidates but does not own. Optional.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000000
      },
      "cash": {
        "title": "Cash and cash equivalents",
        "description": "Cash and short-term investments on the balance sheet.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000000
      },
      "ebitda": {
        "title": "EBITDA",
        "description": "Earnings before interest, taxes, depreciation and amortization, for EV/EBITDA. Optional.",
        "type": "number",
        "x-unit": "USD",
        "exclusiveMinimum": 0,
        "maximum": 1000000000000000
      }
    }
  },
  "outputs": {
    "ev": {
      "label": "Enterprise value (EV)",
      "description": "Market cap + debt + preferred stock + noncontrolling interests − cash.",
      "format": "money"
    },
    "marketCap": {
      "label": "Market capitalization",
      "description": "Share price × shares outstanding, or the market cap typed.",
      "format": "money"
    },
    "netDebt": {
      "label": "Net debt",
      "description": "Total debt − cash; negative when cash is larger.",
      "format": "money"
    },
    "multiple": {
      "label": "EV/EBITDA",
      "description": "Enterprise value ÷ EBITDA, when EBITDA is given.",
      "format": "number"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "from": "price",
      "price": 50,
      "shares": 10000000,
      "cap": 500000000,
      "debt": 150000000,
      "pref": 0,
      "nci": 0,
      "cash": 50000000
    },
    "outputs": {
      "ev": 600000000,
      "marketCap": 500000000,
      "netDebt": 100000000
    },
    "text": "Market cap of $500,000,000.00 plus the other claims, less cash, gives an enterprise value of $600,000,000.00 (net debt $100,000,000.00)."
  },
  "examples": [
    {
      "given": {
        "from": "price",
        "price": 50,
        "shares": 10000000,
        "debt": 150000000,
        "cash": 50000000
      },
      "expect": {
        "ev": 600000000,
        "marketCap": 500000000,
        "netDebt": 100000000
      },
      "source": "OpenStax, Principles of Finance, 11.1 Multiple Approaches to Stock Valuation (enterprise value is the total value of a company: the market value of equity plus net debt, debt minus cash and equivalents; EV/EBITDA). https://openstax.org/books/principles-finance/pages/11-1-multiple-approaches-to-stock-valuation; Aswath Damodaran, NYU Stern, Variables used in Data Set (enterprise value = market value of equity + debt − cash; market value of equity = shares outstanding × share price). https://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/variable.htm; hand calculation in content.mdx: 50 × 10,000,000 = 500,000,000; 500,000,000 + 150,000,000 − 50,000,000 = 600,000,000"
    },
    {
      "given": {
        "from": "cap",
        "cap": 2400000000,
        "debt": 800000000,
        "pref": 100000000,
        "nci": 50000000,
        "cash": 350000000,
        "ebitda": 300000000
      },
      "expect": {
        "ev": 3000000000,
        "netDebt": 450000000,
        "multiple": 10
      },
      "source": "OpenStax, Principles of Finance, 11.1 Multiple Approaches to Stock Valuation (enterprise value is the total value of a company: the market value of equity plus net debt, debt minus cash and equivalents; EV/EBITDA). https://openstax.org/books/principles-finance/pages/11-1-multiple-approaches-to-stock-valuation; Aswath Damodaran, NYU Stern, Variables used in Data Set (enterprise value = market value of equity + debt − cash; market value of equity = shares outstanding × share price). https://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/variable.htm; hand calculation in content.mdx: 2,400 + 800 + 100 + 50 − 350 = 3,000 (million); 3,000 ÷ 300 = 10"
    },
    {
      "given": {
        "from": "price",
        "price": 12.5,
        "shares": 4000000,
        "debt": 0,
        "cash": 60000000
      },
      "expect": {
        "ev": -10000000,
        "marketCap": 50000000,
        "netDebt": -60000000
      },
      "source": "OpenStax, Principles of Finance, 11.1 Multiple Approaches to Stock Valuation (enterprise value is the total value of a company: the market value of equity plus net debt, debt minus cash and equivalents; EV/EBITDA). https://openstax.org/books/principles-finance/pages/11-1-multiple-approaches-to-stock-valuation; Aswath Damodaran, NYU Stern, Variables used in Data Set (enterprise value = market value of equity + debt − cash; market value of equity = shares outstanding × share price). https://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/variable.htm; hand calculation in content.mdx: 12.50 × 4,000,000 = 50,000,000; 50,000,000 + 0 − 60,000,000 = −10,000,000"
    },
    {
      "given": {
        "from": "price",
        "price": 37.25,
        "shares": 2345678,
        "debt": 12000000.75,
        "pref": 1500000,
        "nci": 250000.5,
        "cash": 3456789.12,
        "ebitda": 9876543.21
      },
      "expect": {
        "marketCap": 87376505.5,
        "ev": 97669717.63,
        "multiple": 9.889058909913887
      },
      "source": "OpenStax, Principles of Finance, 11.1 Multiple Approaches to Stock Valuation (enterprise value is the total value of a company: the market value of equity plus net debt, debt minus cash and equivalents; EV/EBITDA). https://openstax.org/books/principles-finance/pages/11-1-multiple-approaches-to-stock-valuation; Aswath Damodaran, NYU Stern, Variables used in Data Set (enterprise value = market value of equity + debt − cash; market value of equity = shares outstanding × share price). https://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/variable.htm; hand calculation in content.mdx: 37.25 × 2,345,678 = 87,376,505.50; + 12,000,000.75 + 1,500,000 + 250,000.50 − 3,456,789.12 = 97,669,717.63 (Python Fraction)"
    }
  ],
  "sources": [
    "OpenStax, Principles of Finance, 11.1 Multiple Approaches to Stock Valuation: enterprise value is a measurement of the total value of a company; Figure 11.2 shows it as the market value of equity plus net debt (debt minus cash and equivalents); EV multiples such as EV/Revenue, EV/EBIT and EV/EBITDA. https://openstax.org/books/principles-finance/pages/11-1-multiple-approaches-to-stock-valuation (retrieved 2026-10-19)",
    "Aswath Damodaran, NYU Stern School of Business, Variables used in Data Set: enterprise value = market value of equity + market value of debt − cash; market value of equity = number of shares outstanding × share price; value/EBITDA = (market value of equity + value of debt − cash) ÷ EBITDA. https://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/variable.htm (retrieved 2026-10-19)",
    "Aswath Damodaran, The Little Book of Valuation, Per Share Value: from the value of the operating assets, cash is added and the market value of minority interests and other claims is subtracted to reach the value of equity; Determining Debt and Equity: preferred stock shares many characteristics with unsecured debt. https://pages.stern.nyu.edu/~adamodar/New_Home_Page/littlebook/valuepershare.htm and https://pages.stern.nyu.edu/~adamodar/New_Home_Page/littlebook/liabilities.htm (retrieved 2026-10-19)"
  ],
  "related": [
    "market-cap",
    "ebitda",
    "wacc",
    "terminal-value"
  ],
  "changelog": []
}