Everyday enterprise value problems come down to one relationship between cash and cash equivalents, market capitalization, minority interest, preferred shares and value of debt. This calculator turns those numbers into enterprise value, with the working shown so you can check the result rather than simply trust it.
What Is the Enterprise Value Calculator?
The enterprise value calculator takes cash and cash equivalents, market capitalization, minority interest, preferred shares and value of debt and turns them into enterprise value.
It is the kind of calculation you would otherwise do on the back of an envelope: mechanical, repeatable and easy to get subtly wrong without noticing.
How the Enterprise Value Figure Is Built
Each result is calculated from the ones before it, so the working is fully visible. That matters when the answer is going to be quoted to somebody else and you need to be able to explain where it came from.
The figures are exactly as good as the assumptions underneath them. Check the rates, the periods and the tax treatment before you rely on the result.
Reading the Result Sensibly
A small change in an input can move the result by much more than you would expect, particularly where the calculation divides by one of the figures you supplied. That is worth understanding before you rely on a figure.
For anything that will be committed to, write the inputs down beside the result. A number you can reproduce is worth far more than one you cannot explain.
A Worked Example
Working through an example, with cash and cash equivalents set to 10, market capitalization set to 5, minority interest set to 2, the calculator returns enterprise value of 107. Substitute your own figures and the same steps produce the same kind of answer.
Frequently Asked Questions
What do I need to work out enterprise value?
Enter cash and cash equivalents, market capitalization, minority interest, preferred shares and value of debt. The calculator then works through the relationship and reports enterprise value.
What does the enterprise value actually calculate?
It takes cash and cash equivalents, market capitalization, minority interest, preferred shares and value of debt and converts them into enterprise value using the standard relationship for this problem. Each step is applied in turn, so every output is traceable back to the numbers you typed in.
How should I enter cash and cash equivalents?
Use the value you actually have, in the unit shown next to the field. Enter every value in the same unit system. The calculator assumes the figures you supply are consistent, so it cannot correct a mistake that happens before the calculation starts.
Does anything you type get stored?
No. The whole calculation runs inside your browser, and nothing you enter is uploaded, logged or sent anywhere.
Why does a small change in one value move the answer so much?
That happens when an output depends on a ratio, because dividing by a small number magnifies any change in it. Check the units first, then check whether the value you entered is in the range the relationship was designed for.