Enter the market cap, debt, minority shareholdings, preferred shares, and cash + cash equivalents into the calculator. The calculator will evaluate the equity value of the company.
- Equity Multiplier Calculator
- Cost of Equity Calculator
- Debt to Equity Ratio Calculator
- Total Equity Calculator
Equity Value Formula
The following formula is used to calculate the equity value of a company.
EV = MC + D + MS + PS + C – D
- Where EV is the equity value
- MC is the market capitalization
- D is the total debt
- MS is the minority shareholdings
- PS is the preferred shares
- C is cash and cash equivalents
Equity Value Definition
An equity value is a financial metric for determining how valuable a particular company and its stock offerings are worth. It’s a measure of that companies stock and cash but does not take into account revenue or profit for any given time period (although those do affect cash).
Equity Value Example
How to calculate equity value?
- First, determine the market cap.
Calculate the market cap of the company.
- Next, determine the total debt.
Measure the total debt owned by the company.
- Next, determine the number of minority shareholdings.
Calculate the total number of shares owned by minority holders.
- Next, determine the preferred shares.
Calculate the total number of preferred shares.
- Next, determine the cash and cash equivalents.
Calculate all of the cash and cash equivalents.
- Finally, calculate the equity value.
Calculate the equity value using the equation above.
Equity value is a measure of a companies value based on all contributing factors minus profit and revenue.