# Enterprise Value Calculator Online.

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