Enterprise Value Calculator
The Enterprise Value Calculator is an essential tool for evaluating the total value of a company. Enterprise Value (EV) is a financial metric that helps investors and analysts understand the complete economic value of a business. Unlike market capitalization, EV considers a company's debt, cash, and other liabilities, making it a more holistic measure of value.
What is Enterprise Value?
Enterprise Value is calculated using the following formula:
EV = Market Capitalization + Total Debt - Cash and Cash Equivalents
Calculate Enterprise Value
Why Use an Enterprise Value Calculator?
- Helps investors evaluate companies beyond just market cap.
- Accounts for a company's debt and cash reserves.
- Used in financial analysis, mergers, and acquisitions.
How to Use the Enterprise Value Calculator?
- Determine the company's market capitalization (share price x total outstanding shares).
- Calculate total debt, including short-term and long-term obligations.
- Find cash and cash equivalents from the company's balance sheet.
- Apply the formula: EV = Market Capitalization + Total Debt - Cash and Cash Equivalents.
Benefits of Calculating Enterprise Value
- Provides a complete picture of a company's financial health.
- Facilitates better investment decisions.
- Helps compare companies across industries and sectors.