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Enterprise Value Formula

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Enterprise Value is a comprehensive measure of a company's total value, representing the theoretical takeover price required to acquire the entire business. Check FAQs
EV=MC+TDC-C
EV - Enterprise Value?MC - Market Capitalization?TDC - Total Debt of Company?C - Cash and Cash Equivalents?

Enterprise Value Example

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With units
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Here is how the Enterprise Value equation looks like with Values.

Here is how the Enterprise Value equation looks like with Units.

Here is how the Enterprise Value equation looks like.

950999Edit=931000Edit+1.2E+7Edit-1.2E+7Edit
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HomeIcon Home » Category Financial » Category Business » Category Financial Ratios » fx Enterprise Value

Enterprise Value Solution

Follow our step by step solution on how to calculate Enterprise Value?

FIRST Step Consider the formula
EV=MC+TDC-C
Next Step Substitute values of Variables
∴ EV=931000+1.2E+7-1.2E+7
Next Step Prepare to Evaluate
∴ EV=931000+1.2E+7-1.2E+7
LAST Step Evaluate
∴EV=950999

Enterprise Value Formula Elements

Variables
Enterprise Value
Enterprise Value is a comprehensive measure of a company's total value, representing the theoretical takeover price required to acquire the entire business.
Symbol: EV
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Enterprise ValueOpen Variable
Market Capitalization
Market Capitalization is a measure of the total market value of a publicly traded company's outstanding shares of stock.
Symbol: MC
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Market CapitalizationOpen Variable
Total Debt of Company
Total Debt of Company refers to the sum of all its outstanding liabilities and obligations that require the company to make payments in the future.
Symbol: TDC
Measurement: NAUnit: Unitless
Note: Value can be positive or negative.
Formulas to find Total Debt of CompanyOpen Variable
Cash and Cash Equivalents
Cash and Cash Equivalents refer to assets that are readily convertible into cash and have a short-term maturity of typically three months or less from the date of purchase.
Symbol: C
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Cash and Cash EquivalentsOpen Variable

Other formulas in Performance Ratio category

​Go Cash Flow to Sales
CFS=OCFS
​Go Cash to Net Income ratio
CFI=OCFNI
​Go Cash Return on Assets
ROAc=OCFTAA
​Go Return on Equity using Shareholder's Equity
ROE=(NIEavg)⋅100

How to Evaluate Enterprise Value?

Enterprise Value evaluator uses Enterprise Value = Market Capitalization+Total Debt of Company-Cash and Cash Equivalents to evaluate the Enterprise Value, The Enterprise Value formula is defined as a comprehensive measure of a company's total value, representing the theoretical takeover price required to acquire the entire business. Enterprise Value is denoted by EV symbol.

How to evaluate Enterprise Value using this online evaluator? To use this online evaluator for Enterprise Value, enter Market Capitalization (MC), Total Debt of Company (TDC) & Cash and Cash Equivalents (C) and hit the calculate button.

FAQs on Enterprise Value

What is the formula to find Enterprise Value?
The formula of Enterprise Value is expressed as Enterprise Value = Market Capitalization+Total Debt of Company-Cash and Cash Equivalents. Here is an example- 950999 = 931000+12000000-11980001.
How to calculate Enterprise Value?
With Market Capitalization (MC), Total Debt of Company (TDC) & Cash and Cash Equivalents (C) we can find Enterprise Value using the formula - Enterprise Value = Market Capitalization+Total Debt of Company-Cash and Cash Equivalents.
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