Calculate enterprise value from market cap, debt, cash, and preferred equity with EV/EBITDA and EV/Revenue multiples.
Buying all common shares is not the same as valuing the entire operating business. This calculator starts with market capitalization, adds debt and preferred equity, and subtracts cash to estimate enterprise value. It then divides that result by EBITDA and revenue to produce two valuation multiples. The most common mistake is mixing reporting periods, valuation dates, currencies, or units. Market capitalization from today and cash from an old filing may produce a result that is mathematically correct but economically misleading.
A concrete input and expected output from the current implementation.
Input
All figures in $ millions Market capitalization: 500 Debt: 120 Cash: 40 Preferred equity: 20 EBITDA: 60 Revenue: 300
Expected output
Enterprise value: $600 million EV/EBITDA: 10.0x EV/Revenue: 2.0x
Enterprise value is 500 + 120 + 20 - 40 = 600. Dividing 600 by EBITDA of 60 gives 10.0, while dividing 600 by revenue of 300 gives 2.0.
The calculation is market capitalization plus debt plus preferred equity minus cash. Market capitalization represents common equity value, while the other entries adjust for the financing claims and cash included in the simplified enterprise value bridge. Every input must use the same currency and scale, such as dollars, thousands, or millions.
EV/EBITDA equals enterprise value divided by EBITDA, and EV/Revenue equals enterprise value divided by revenue. Because the numerator reflects the supplied market and balance-sheet values, both multiples describe valuation at those inputs rather than an accounting value fixed for the reporting period. Comparisons are most useful when companies use reasonably comparable financial definitions.
No. This result is a simplified valuation measure based on the entered figures, not a transaction price. An acquisition may involve a control premium, assumed liabilities, minority interests, fees, working-capital adjustments, and debt-like items that are outside the listed inputs. The calculator is suitable for a valuation bridge, not a complete purchase-price calculation.
Enter debt and cash separately because the formula adds debt and subtracts cash. What qualifies for either field depends on the analysis and the source financial statements. The calculator cannot decide whether leases, restricted cash, short-term investments, pension deficits, or other items should be treated as debt-like or cash-like.
The example and behavioral notes were checked against the browser implementation. Standards and primary references below define the relevant format, formula, or platform behavior.
Calculate gross, operating, and net profit margins from cost and revenue with breakeven analysis.
Convert between annual salary and hourly rate with adjustments for work hours, overtime, and benefits.
Calculate sales tax amounts, tax-inclusive and tax-exclusive prices for any tax rate or jurisdiction.
Calculate return on investment from initial cost and final value with annualized ROI and comparison tables.
Convert between markup and margin percentages, calculate selling price, and compare pricing strategies.
Convert numeric amounts to written words for invoices, checks, and legal documents in multiple currencies.