Enterprise Value ↔ Equity Value Calculator
Equity Value: The total value of a company's shares owned by its investors.
Enterprise Value: The total value of a business including debt, debt-like items and cash adjustments.
This calculator converts Enterprise Value to Equity Value and vice versa.
More info →
Input
Select a conversion type and enter the required values.
How This Calculator Works
Enterprise value is what the whole business is worth to everyone who funds it. Equity value is the part that belongs to shareholders. The bridge between them is debt (which belongs to lenders) and cash (which belongs to shareholders). This calculator converts one into the other.
The Formulas
Equity Value = Enterprise Value − Total Debt + Total Cash
Enterprise Value = Equity Value + Total Debt − Total Cash
Enterprise Value = Equity Value + Total Debt − Total Cash
Total Debt = Long-Term Debt + EOSB + Other Debt-Like Items · Total Cash = Cash + Marketable Securities + Other Cash-Like Items ·
Net Debt = Total Debt − Total Cash
What Each Input Does
- Conversion Type
- Choose whether you are starting from enterprise value or from equity value.
- Long-Term Debt / EOSB / Other Debt-Like Items
- Everything owed that a buyer would have to take on. EOSB (End of Service Benefits) is staff gratuity owed.
- Cash / Marketable Securities / Other Cash-Like Items
- Cash and near-cash a buyer would receive with the business.
Step by Step
- Debt items are added to give total debt.
- Cash items are added to give total cash.
- From enterprise value, debt is subtracted and cash is added. From equity value, the reverse is done.
Reading the Result
Net debt – positive means more debt than cash; negative means net cash, so equity value is higher than enterprise value.
Quick Example
Enterprise value 1,000,000, long-term debt 300,000, EOSB 50,000,
cash 100,000, marketable securities 50,000. Total debt is 350,000 and total cash
is 150,000, so equity value = 1,000,000 − 350,000 + 150,000 = 800,000.
Artoval Financial Labs