Enter the market capitalization, minority interest, preffed shares, value of debt, and cash to calculate the enterprise value.

## Enterprise Value Formula

The following formula is used to calculate the enterprise value of a company.

EV = MC + D + MI + PS – C

- Where EV is the enterprise value
- Enterprise value is a measure of the total value of a company with respect to the values above

- MC is the market cap
- Market Capitalization is the value of all of the outstanding shares of a company

- D is the debt
- debt is the amount of outstanding monetary commitments

- MI is the minority interest
- equity owned by an investor or company with less than 50% interest

- PS is the preferred shares
- stocks that have claim to a companies assets

- C is the cash
- cash and cash equivalents

## Enterprise Value Definition

Enterprise value is a financial term used to describe the value of a company based on market cap, debt, minority interest, preferred shares, and cash.

## How to calculate Enterprise Value?

How to calculate enterprise value?

**First, determine the market cap.**Calculate the total market capitalization of the company.

**Next, determine the total debt.**Measure the total debt owned by the company.

**Next, determine the minority interest.**Calculate the equity owned by the minority investors.

**Next, determine the preferred shares.**Measure the total number of preferred shares.

**Next, determine the cash.**Measure the cash and cash equivalents owned by the company.

**Finally, calculate the enterprise value.**Using the formula above, calculate the enterprise value.

## FAQ

**What does enterprise value represent?**

Enterprise value is a measure of the value of a company that goes further than just the market cap since it takes into account debt and other factors. It’s typically a better indicator of the “true” value of a company.

**Where is enterprise value used?**

Enterprise value is typically used in the finance sector for determining good investments.

**How to calculate Enterprise value?**

Simply use the calculator above.

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