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enterprise value Calculator

Enterprise Value Calculator

Market capitalization:

Preferred Shares:

Market Value of Debt:

Minority Interest:

Cash & Cash Equivalents:

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Yes – “Value” is an impressive word. People often discuss several terms of value like “value propositions, customer value, value creation, value chains, enterprise value, shareholder value, value management, etc. It sounds like only they know each and everything than the rest of us. But, remember that the value of all this value is “Enterprise Value.”

That’s the reason folks often asked how to calculate enterprise value. Well, quite worrying, we bring an advanced version of finance widget known as “enterprise value calculator.”

Well, give a read to this content to know what is enterprise value, what the enterprise value formula is, enterprise value calculator, and all you need to know!

Let’s ahead to find out more about EV!

What Is Enterprise Value?

In simple words, the (EV) represents the value of the ongoing operations of a company. More specifically, (EV) takes into account to measures the value of a company’s business instead of measuring the value of the company. It attempts to determine how much it would cost to buy a company’s business free of its liabilities and debts.

According to optimistic studies, it is a measure of the theoretical takeover price of a company’s business! Keep in mind; enterprise value calculation becomes easy using a simple enterprise value formula!

What Is The Enterprise Value Formula?

The EV formula in a simple way is said to be as the sum of market capitalization, a value of debt subtracting cash and equivalents, which is written as:

EV = Market Capitalization + Market Value of Debt – Cash and Equivalent

And, this enterprise value equation is extended as:

EV = Common Shares + Preferred Shares + Market Value of Debt + Minority Interest – Cash and Equivalents

Where:

  • Market Capitalization – it is a value of common shares of the company
  • Common Shares – it is said to be as the shares that available with a company (market capitalization)
  • Preferred Shares – if the shares are redeemable, then these shares are treated as debt
  • Market Value of Debt – it is the value of all debt of the company
  • Minority Interest – it is said to be as the portion of subsidiaries that are held by an investor or other company
  • Cash and Equivalent – it is a cash and investment of a company

Let’s move ahead to find out the tool for calculating enterprise value!

Enterprise Value Calculator By Calculator-Online:

People often confused to do enterprise valuation, but our experts make it easy for you with this advanced Enterprise Value Calculator. The tool allows you to measure the entire economic worth of a company’s business. Yes, this efficient tool is your best finance companion to determine the enterprise value of a company based on its common shares, preferred shares, the value of debt, and cash & equivalent!

Now, take a look at how it works!

How Enterprise Value Calculator Works?

Don’t to worry; this handy tool is quite easy to use – you just have to enter some values to do enterprise value calculations!
Get ready to know how do you calculate enterprise value with this tool. Stick on these steps to get enterprise values quickly:

  • In the above calculator, you can see five fields that you have to enter to get your desired results
  • First of all, you have to enter the value of the common shares of the company in the field of “Common Shares.”
  • Then, you have to enter the value of preferred shares in the field of “Preferred Shares.”
  • Right after, you have to add the value of all debt of the company in the field of “Market Value of Debt.”
  • Then, you ought to add the value of subsidiaries that are held by an investor or other company in the field of “Minority Interest.”
  • Then, you have to add the value of cash and investment of a company in the field of “Cash & Cash Equivalents.”
  • Once done, means you entered all value in the given field, then you ought to hit the calculate button to get EV

Thankfully, you unfold the question of how is enterprise value calculated!

How to Calculate Enterprise Value?

If you want to unfold this question, then the above enterprise value formula needs to take into an account!

For Example:

A company has a common stock value of $6,000, preferred stock value of $2,000, debt value of $4,000, minority interest of $1,000, and cash and investments of $600. Find its EV?

Solution:

The Formula is:

EV = Common Shares + Preferred Shares + Value of Debt + Minority Interest – Cash and Equivalents

Let’s put the values in this enterprise value equation:

EV = $6,000 + $2,000 + $4,000 + $1,000 – $600

Therefore, the company has an EV of $12,400.

Words By Calculator-Online:

Optimistic studies reveal that is works as a key factor for an investor to decide on investment of the company. EV is also taken into account to compare the capital structure of two companies that helps an investor to invest in the right company. So, utilize our free enterprise value calculator to know the economic value of the company – Good Luck!