Enterprise Value Calculator

Let's break down each component:

Market Capitalization

Market capitalization represents the total value of a company's outstanding common shares. Calculate it by multiplying the current share price by the number of shares outstanding:

Market Cap = Share Price × Shares Outstanding

For public companies, this information is readily available. For private companies, you'll need to estimate equity value through comparable company analysis or discounted cash flow methods.

Total Debt

Total debt includes all interest-bearing liabilities, both short-term and long-term. This encompasses:

• Short-term borrowings
• Current portion of long-term debt
• Long-term debt
• Capital lease obligations

These figures can be found on the company's balance sheet under current and non-current liabilities.

Cash and Cash Equivalents

Cash and cash equivalents include highly liquid assets that can be readily converted to cash, such as:

• Cash on hand
• Bank deposits
• Short-term investments (maturity under 90 days)
• Marketable securities

This amount is subtracted because an acquirer would effectively receive this cash upon acquisition, reducing the net purchase price.

Preferred Stock and Minority Interest

These additional components represent claims on the company by parties other than common equity holders:

• Preferred Stock: Shares with priority over common stock for dividends and assets
• Minority Interest: The portion of subsidiaries not owned by the parent company