Calculate enterprise value, equity value, EV/EBITDA, EV/Sales, EV/FCF, and net debt from market cap, debt, cash, and financial metrics
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Faiq Ur Rahman is a web designer, digital product developer, and founder of Toolraxy, a growing platform of web-based calculators and utility tools. He specializes in building structured, user-friendly tools focused on health, finance, productivity, and everyday problem-solving.
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Enterprise value is what you’d pay to buy a company outright. You pay for the equity, assume the debt, absorb minority interests and preferred claims, and get the cash back. That last part matters: a company sitting on $40 billion in cash looks expensive on market cap alone but far cheaper once you net the cash out.
Equity analysts use EV to compare companies with different capital structures. A debt-heavy competitor and a cash-rich one can trade at the same market cap but have very different enterprise values. This calculator shows both numbers side by side, plus the EV/Equity ratio that tells you how leveraged the balance sheet is.
The EV/EBITDA, EV/Revenue, and EV/FCF fields are optional. Fill them in and you get the standard multiples investment banks and private equity firms quote in every deal memo. Leave them blank and you still get EV, net debt, and the leverage read.
Pick the currency you want displayed.
Enter the current share price.
Add shares outstanding. Market cap updates automatically.
Enter total debt, covering both short-term and long-term borrowings.
Enter cash and cash equivalents.
Add minority interest and preferred stock if the balance sheet has them.
Optionally, enter revenue, EBITDA, and free cash flow to compute valuation multiples.
Read enterprise value, net debt, and EV/Equity from the result panel.
Enterprise value answers one question: what would it cost to buy the whole business today, free and clear?
Formula: Enterprise Value = Market Cap + Total Debt + Minority Interest + Preferred Stock − Cash & Equivalents
Where:
Market Cap = Share Price × Shares Outstanding
Net Debt = Total Debt − Cash & Equivalents
EV/Equity = Enterprise Value ÷ Market Cap
The calculation is symmetric. Add every non-equity claim (debt, minority interest, preferred stock) to the equity value, then subtract cash. The result is the takeover price a buyer would need to pay to own 100% of the business and retire all its obligations.
If cash exceeds debt, net debt goes negative and the tool labels the position as net cash. That flips the EV/Equity ratio below 1.0 and moves the company into the “cash-rich” or “net cash” bands on the interpretation table.
The multiples only appear when the denominator is positive. Enter a negative EBITDA or a zero revenue figure and the calculator hides that row rather than producing a meaningless number. The same guard applies to EV/FCF: negative free cash flow turns the multiple off.
A large-cap industrial company trades at $150 per share with 1 billion shares outstanding, giving a market cap of $150 billion. It carries $20 billion in total debt and holds $10 billion in cash. There’s no minority interest and no preferred stock. Revenue for the trailing twelve months is $80 billion, EBITDA is $25 billion, and free cash flow is $12 billion.
Net debt: $20B − $10B = $10B.
Enterprise value: $150B + $20B + $0 + $0 − $10B = $160B.
EV/Equity: $160B ÷ $150B = 1.07×.
EV/Revenue: $160B ÷ $80B = 2.00×.
EV/EBITDA: $160B ÷ $25B = 6.40×.
EV/FCF: $160B ÷ $12B = 13.33×.
The calculator places 1.07× in the “Balanced” band, which fits a business with modest leverage. EV/EBITDA at 6.4× is on the low side for a large-cap industrial, and EV/FCF at 13.3× suggests the market is pricing steady cash generation rather than rapid growth. Change the cash figure to $35 billion and the EV drops to $135 billion, pushing EV/EBITDA under 5.5× and moving EV/Equity into the “Net cash” band.
Enterprise value is the theoretical cost to acquire a company, including equity, debt, minority interest, and preferred stock, minus cash. It’s the market value of the operating business rather than just the equity stub. EV is the standard numerator in EV/EBITDA and EV/Revenue multiples.
Add total debt, minority interest, and preferred stock to market cap, then subtract cash and cash equivalents. A company with a $200 million market cap, $50 million in debt, and $20 million in cash has an EV of $230 million.
Market cap is the value of the equity alone. Enterprise value includes debt and other non-equity claims, net of cash. Two companies with the same market cap can have very different EVs if one carries debt and the other holds cash.
Net debt is total debt minus cash and cash equivalents. It bridges equity value and enterprise value: EV equals market cap plus net debt, plus minority interest and preferred stock. A negative net debt figure means the company holds more cash than debt.
For most sectors, 8× to 15× is typical. Utilities and telecom often sit at 6× to 10×. High-growth software reaches 20× to 30×. Anything above 25× requires strong EBITDA growth to justify. Below 6× often signals a cyclical peak or a value opportunity.
EV exceeds market cap when the company carries net debt. Add debt and other non-equity claims, then subtract cash. If the net figure is positive, EV is above market cap. This is common in capital-intensive businesses like industrials and utilities.
EV can be negative in theory when cash exceeds market cap plus debt and other claims. In practice this is rare and usually signals a market pricing in distress or pending liabilities. The calculator flags a net cash position on the interpretation table.
EV/Revenue is used for companies with low or negative EBITDA, where earnings-based multiples don’t work. It typically runs 1× to 3× for mature businesses and 5× to 15× for high-growth software. It ignores profitability, so it’s a rough measure.
EV/FCF divides enterprise value by free cash flow, which is operating cash flow minus capital expenditures. Typical multiples range from 15× to 30×. It’s a stricter measure than EV/EBITDA because it accounts for the cash a business actually produces after reinvestment.
Multiply share price by shares outstanding. A stock at $45 with 30 million shares has a $1.35 billion market cap. This calculator syncs market cap automatically when you change price or share count, and you can also override it manually.
Minority interest is the portion of a subsidiary not owned by the parent company. It’s a real claim on the consolidated business, so it’s added to enterprise value. Most large companies have zero or negligible minority interest. When it exists, it can be material.
Enterprise value is the starting point for acquisition pricing. A buyer pays EV to own the entire business, retire the debt, and keep the cash. Investment banks quote purchase multiples as EV/EBITDA or EV/Revenue. The acquirer then bridges from EV to equity value by subtracting net debt and other claims.
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