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FUNDAMENTAL

Enterprise Value (EV) Calculator

Enterprise Value (EV) represents the total economic takeover value of a company, reflecting the theoretical purchase price including debt assumption and cash deduction.

Financial Calculator
Input Parameters
Click Calculate when ready
e.g. Rs 5,00,00,000
Rs
e.g. Rs 1,50,00,000
Rs
e.g. Rs 80,00,000
Rs
e.g. Rs 80,00,000
Rs
Calculation Results
Enter your values and click Calculate.

Provide the input parameters on the left to compute the official financial result and metrics.

DECISION MODELINGSENSITIVITY ANALYSIS

Sensitivity Analysis

Evaluate how variations in key operational drivers impact Enterprise Value.

Varying Equity Market Valuation
Calculate the base model above to view scenario sensitivity rows.

Formula & Methodology

Enterprise Value = Market Capitalization + Total Debt - Cash & Cash Equivalents
Market Cap
Equity Market Capitalization

Share Price × Total Shares Outstanding.

Total Debt
Interest-Bearing Debt

Short-term and long-term borrowings.

Cash
Cash & Liquid Equivalents

Cash, bank balances, and marketable securities.

Practical Worked Example

A company has Rs 50 Cr market cap, Rs 15 Cr debt, Rs 8 Cr cash, and Rs 8 Cr annual EBITDA.

01.Net Debt = Rs 15 Cr − Rs 8 Cr = Rs 7 Cr.
02.Enterprise Value = Rs 50 Cr + Rs 7 Cr = Rs 57 Cr.
03.EV / EBITDA = Rs 57 Cr / Rs 8 Cr = 7.13x.
EV = Rs 57 Cr (7.13x EV/EBITDA)Enterprise Value provides a capital-structure-neutral valuation of the core operating business.

Interpretation & Industry Benchmarks

EV is widely used in mergers and acquisitions (M&A) to price complete buyouts.

EV / EBITDA 6x–10xReasonable Valuation

Typical for mature industrial and consumer companies.

Industry Nuance: Negative net debt (net cash) means cash exceeds total debt, lowering EV below Market Cap.

Analytical Limitations

  • Does not include off-balance sheet operating lease liabilities unless capitalized.

Frequently Asked Questions

Why is cash subtracted when calculating Enterprise Value?

An acquirer buying the company receives the cash on the balance sheet, which can immediately be used to pay off acquired debt.

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Disclaimer: For educational and analytical modeling purposes only. Does not constitute financial or investment advice.