Enterprise & Equity Value Calculator
Convert between Enterprise Value (EV) and Equity Value (Market Cap). Break down corporate capitalization structures, adjusting for cash, debt, preferred equity, and minority interest.
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Equity Value (Market Capitalization)
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Enterprise Value (EV)
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Enter parameters on the left to calculate enterprise value.
Equity Value (Market Cap):
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Net Debt Contribution:
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Adjusted Book Debt:
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Imputed Stock Price:
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Capitalization Structure Stack
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Understanding Enterprise vs. Equity Value
In corporate finance, it is critical to distinguish between the value of a company’s equity and the total value of its operations:
- Equity Value (Market Capitalization): The total market value of the company’s outstanding common shares. This is the valuation perceived directly by stock market traders.
- Enterprise Value (EV): Represents the total economic value of the operating business. EV is often described as the theoretical “takeover price” because an acquirer must purchase all equity, take on all debt, and gets to pocket all the target company’s cash.
Capitalization Bridge Formulas
Enterprise Value (EV) = Equity Value + Debt + Preferred Stock + Minority Interest – Cash
Conversely, to find Equity Value when starting from Enterprise Value:
Equity Value = Enterprise Value – Debt – Preferred Stock – Minority Interest + Cash