Enterprise Value Calculator Online.

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Enterprise Value Calculator

Enterprise Value Calculator

The Enterprise value (EV in short) – a measure of a company’s total value.Enterprise Value equal to Market Capitalization added to debt ,minority interest, preferred shares less than Cash and Cash Equivalents.

Formula us,

Enterprise value = market capitalization + debt + minority interest + preferred shares – cash and cash equivalents

Let us consider,

  • Market capitalization – the market value of the whole range of outstanding shares a company has.
  • Minority interest – less than 50% of subsidiary’s equity owned by an investor or other company.
  • Preferred shares – one of two main types of stock, besides common stock. Preferred stock is firmer but usually less profitable, and the shareholders .
  • Debt – it’s simply the amount of debt that needs to be absorbed by the purchaser.
  • Cash and cash equivalents – owned by the acquired company.

 calculate enterprise value.

Example

  • Outstanding shares: 7.5M
  • Share price: $16.45 per share
  • Total debt: $123.5M
  • Cash and cash equivalents: $40M

Calculate Market capitalization

Market Capitalization = Outstanding shares * Share Price

market capitalization = 7.5M * $16.45 = $123.375M

Example for Enterprise Value

Enterprise value = market capitalization + debt + minority interest + preferred shares – cash and cash equivalents

Enterprise Value = $123.375M + $123.5M – $40M

The answer is Enterprise value = $286m

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