Enterprise Value Calculator
Enterprise Value (EV or TEV) represents the total value of a company attributable to all providers of capital: equity holders, debt holders and other claimants. It is commonly used for valuation comparisons, takeover premiums, and as the numerator in valuation multiples.
This calculator supports three common methods: market approach (market capitalization plus net debt and adjustments), the EBITDA multiple approach (EV = EBITDA × multiple), and a sum-of-parts approach. Use the method that best matches your available data and purpose, and record assumptions when presenting results.
Governance
Record a04f376f894e • Reviewed by Fidamen Standards Committee
Calculates Enterprise Value starting from market capitalization and reconciling balance-sheet items and user adjustments.
Inputs
Results
Enterprise Value (TEV)
$0.00
| Output | Value | Unit |
|---|---|---|
| Enterprise Value (TEV) | $0.00 | USD |
Visualization
Methodology
Market approach: start from market capitalization (public companies) and add claim items (total debt, minority interest, preferred stock), subtract cash, and apply one‑time or recurring adjustments. This reflects amount attributable to all capital providers.
Multiple approach: apply an appropriate EV/EBITDA multiple to an EBITDA figure that has been selected and, if needed, normalized for one‑offs. Choose multiples from comparable companies or transaction precedents and document the source and date.
Sum-of-parts: value each operating segment and non‑operating assets independently, aggregate the parts, then include or exclude liabilities consistently with how parts were valued.
Worked examples
Example (market approach): Market cap $500m + total debt $120m + minority interest $10m + preferred $0 - cash $30m = $600m (before adjustments).
Example (multiple approach): EBITDA $50m × multiple 8 = $400m. Add/subtract adjustments like non-operating cash or pension deficits to reconcile to final EV.
F.A.Q.
Should I use reported debt or enterprise value‑adjusted debt?
Use the debt measure consistent with your valuation approach. Reported total debt is common; for financial transactions you may use net borrowings, off‑balance sheet obligations, lease liabilities or present value of pensions. Document any adjustments and, if material, perform sensitivity checks.
How do I choose an EV/EBITDA multiple?
Select peers or precedent transactions with similar growth, margin profile, and capital intensity. Ensure the EBITDA basis (reported vs. normalized) matches how multiples were derived. Run sensitivity ranges to show valuation dependence on the multiple.
Are minority interest and preferred stock always added?
Yes, to reflect claims on enterprise value they are typically added. The objective is to measure value available to all capital providers before isolating equity value.
What are common pitfalls?
Mixing incompatible bases (using reported EBITDA with transaction multiples that were based on normalized EBITDA), omitting lease liabilities or pension deficits, and failing to document one‑time adjustments. Always reconcile to audited financial statements where possible.
How accurate is this calculator?
This tool computes EV from inputs using standard formulas. Accuracy depends entirely on the correctness and consistency of your inputs and assumptions. Use outputs for indicative analysis and stress‑test key assumptions; do not rely on a single-point estimate for transaction pricing or regulatory filings.
Sources & citations
- National Institute of Standards and Technology (NIST) — https://www.nist.gov/
- International Organization for Standardization (ISO) — Standards list — https://www.iso.org/standards.html
- Institute of Electrical and Electronics Engineers (IEEE) — https://www.ieee.org/
- Occupational Safety and Health Administration (OSHA) — https://www.osha.gov/
- International Financial Reporting Standards (IFRS) Foundation — https://www.ifrs.org/
- Financial Accounting Standards Board (FASB) — https://www.fasb.org/
- SEC — Non-GAAP Financial Measures Guidance — https://www.sec.gov/corpfin/non-gaap-financial-measures
- CFA Institute — Global Investment Performance Standards (GIPS) — https://rpc.cfainstitute.org/gips-standards
Further resources
Versioning & Change Control
Audit record (versions, QA runs, reviewer sign-off, and evidence).
Record ID: a04f376f894eWhat changed (latest)
v1.0.0 • 2025-11-03 • MINOR
Initial publication and governance baseline.
Why: Published with reviewed formulas, unit definitions, and UX controls.
Public QA status
PASS — golden 25 + edge 120
Last run: 2026-01-23 • Run: golden-edge-2026-01-23
Versioning & Change Control
Audit record (versions, QA runs, reviewer sign-off, and evidence).
What changed (latest)
v1.0.0 • 2025-11-03 • MINOR
Initial publication and governance baseline.
Why: Published with reviewed formulas, unit definitions, and UX controls.
Public QA status
PASS — golden 25 + edge 120
Last run: 2026-01-23 • Run: golden-edge-2026-01-23
Engine
v1.0.0
Data
Baseline (no external datasets)
Content
v1.0.0
UI
v1.0.0
Governance
Last updated: Nov 3, 2025
Reviewed by: Fidamen Standards Committee (Review board)
Credentials: Internal QA
Risk level: low
Reviewer profile (entity)
Fidamen Standards Committee
Review board
Internal QA
Entity ID: https://fidamen.com/reviewers/fidamen-standards-committee#person
Semantic versioning
- MAJOR: Calculation outputs can change for the same inputs (formula, rounding policy, assumptions).
- MINOR: New features or fields that do not change existing outputs for the same inputs.
- PATCH: Bug fixes, copy edits, or accessibility changes that do not change intended outputs except for previously incorrect cases.
Review protocol
- Verify formulas and unit definitions against primary standards or datasets.
- Run golden-case regression suite and edge-case suite.
- Record reviewer sign-off with credentials and scope.
- Document assumptions, limitations, and jurisdiction applicability.
Assumptions & limitations
- Uses exact unit definitions from the Fidamen conversion library.
- Internal calculations use double precision; display rounding follows the unit's configured decimal places.
- Not a substitute for calibrated instruments in regulated contexts.
- Jurisdiction-specific rules may require official guidance.
Change log
v1.0.0 • 2025-11-03 • MINOR
Initial publication and governance baseline.
Why: Published with reviewed formulas, unit definitions, and UX controls.
Areas: engine, content, ui • Reviewer: Fidamen Standards Committee • Entry ID: 4e6640ee877b