Enterprise value calculates the total value of a particular company, and also many times considered as a theoretical buying price of the entire company. It includes in the calculation the market capitalization, value of debt, minority interest, preferred shares, cash and cash equivalents, etc.
EV is called more accurate because it gives us a wider view of the given company. An important point is if any buyer wants to purchase a company for that he must have to be prepared to pay the company's debt.
The formula for calculating enterprise value is as follows:
Calculate, Enterprise Value = Market Capitalization + Value of Debt + Minority Interest + Preferred Shares - Cash and Cash Equivalents
Enterprise value is mostly used in EBITDA multiple, which compares a company's theoretical purchase value to its operating profit.
What can you do with Enterprise Value Calculator?
- It helps to calculate the enterprise value of the company and helps to measure the purchase price of the company.
- Users can see the accurate value of the enterprise. And also can see the enterprise value in words.
- This calculator helps to share your calculations by URL.