Enterprise value calculator
Market cap of 1,000,000,000 plus 250,000,000 of debt, minus 50,000,000 of cash, gives an enterprise value of 1,200,000,000: what a buyer pays for the whole company, not only its shares. Free in your browser.
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Worked example
- Market cap
- 1,000,000,000
- Total debt
- 250,000,000
- Cash equivalents
- 50,000,000
- Net debt
- 200,000,000
- Enterprise value
- 1,200,000,000
Enterprise value — searched as an enterprise value calculator, EV from market cap, or firm value — is the headline takeout price of a whole firm: equity plus net debt, not the equity stub alone. A result of 1.2 billion means a buyer would need that much to acquire the operations after assuming the debt and taking the surplus cash.
What enterprise value measures and how the identity is formed
The enterprise-value identity answers a single takeout question: what would a buyer pay for the whole firm, not just the residual equity stub? Searchers who type enterprise value calculator want that sum, not a price-to-earnings ratio that ignores leverage, not a market-cap ticker that pretends cash and debt cancel, and not a spreadsheet that silently mixes reporting currencies. Market capitalization is the equity claim: shares outstanding times the last print, or an agreed equity value in a private deal, in one currency unit on one date.
Total debt is the interest-bearing claim stacked above common equity: notes, bonds, drawn revolvers, and finance leases the teaser treats as debt. Cash equivalents are surplus cash and short-term investments that a buyer can apply against that debt on the same date. A print of 1.2 billion means the operations are priced at that figure after debt is assumed and cash is taken.
What you can do with it
Trading comps and screening
Turn reported market cap, interest-bearing debt, and surplus cash into the enterprise-value print a comps table will rank next to sector peers.
M&A teaser and CIM checks
Paste advertised equity value, total debt, and cash from a teaser so the implied takeout price is visible before a football-field chart is built.
Classroom and CFA valuation drills
Seed examples that return a rounded enterprise value on a non-negative market cap and fail loudly when market capitalization is negative.
FAQ
What is the formula for enterprise value?
Add market capitalization and total debt, then subtract cash and cash equivalents. It is the same as equity value plus net debt: 1,000,000,000, 250,000,000 and 50,000,000 give 1,200,000,000.
Why is cash subtracted from enterprise value?
Because whoever buys the company also gets its surplus cash and can use it to pay down part of the debt they take on. That is why net debt matters, not gross debt.
What counts as total debt?
Interest-bearing borrowings: notes, bonds, drawn credit lines and finance leases. Enter everything in one currency and as of the same date as market cap and cash, because the calculator does not convert currencies.
Does enterprise value include preferred stock, minority interest or a control premium?
Not automatically. To count preferred stock or non-controlling interest, add them to total debt before you calculate. No control premium is applied either; that belongs in your own valuation work.
Related tools
For developers — API access
Everything on this page is available programmatically. This section is for teams who want to wire it into their own systems; everyone else can just use the tool above.
API endpoint
Prefer to automate it? One authenticated POST creates the task; the result comes back by webhook or a signed link. The same capability also runs here on the web, by email and from Telegram — and soon from our app too.
Call it from your stack
curl -X POST https://api.kit.forhosting.com/fin/enterprise-value \
-H "Authorization: Bearer $KIT_KEY" \
-H "Content-Type: application/json" \
-d '{"market_cap":1000000000,"total_debt":250000000,"cash_equivalents":50000000}'const res = await fetch("https://api.kit.forhosting.com/fin/enterprise-value", {
method: "POST",
headers: {
"Authorization": `Bearer ${process.env.KIT_KEY}`,
"Content-Type": "application/json"
},
body: JSON.stringify({
"market_cap": 1000000000,
"total_debt": 250000000,
"cash_equivalents": 50000000
})
});
const { task_id } = await res.json();import os, requests
res = requests.post(
"https://api.kit.forhosting.com/fin/enterprise-value",
headers={"Authorization": f"Bearer {os.environ['KIT_KEY']}"},
json={
"market_cap": 1000000000,
"total_debt": 250000000,
"cash_equivalents": 50000000
},
)
task_id = res.json()["task_id"]<?php
$res = file_get_contents("https://api.kit.forhosting.com/fin/enterprise-value", false, stream_context_create([
"http" => [
"method" => "POST",
"header" => "Authorization: Bearer " . getenv("KIT_KEY") . "\r\nContent-Type: application/json",
"content" => '{"market_cap":1000000000,"total_debt":250000000,"cash_equivalents":50000000}',
],
]));
$task = json_decode($res, true);body := bytes.NewBufferString(`{"market_cap":1000000000,"total_debt":250000000,"cash_equivalents":50000000}`)
req, _ := http.NewRequest("POST", "https://api.kit.forhosting.com/fin/enterprise-value", body)
req.Header.Set("Authorization", "Bearer "+os.Getenv("KIT_KEY"))
req.Header.Set("Content-Type", "application/json")
res, _ := http.DefaultClient.Do(req)Example request
{
"market_cap": 1000000000,
"total_debt": 250000000,
"cash_equivalents": 50000000
}Example response
{
"task_id": "tsk_a1b2c3d4e5f6a1b2c3d4e5f6",
"type": "fin.enterprise_value",
"status": "queued",
"_links": {
"result": "/tasks/tsk_…/result"
}
}The API is asynchronous: the call returns a task_id immediately and the result arrives by webhook. Polling is capped at 1 req/s per task.
Pricing
Published price — no tokens, no invented credits. A failed task is never charged.
Limits
max_abs_value | 1000000000000000 |
Errors
| HTTP | Code | Meaning |
|---|---|---|
401 | unauthorized | Missing or invalid API key. |
402 | insufficient_balance | Your balance doesn't cover the task price. |
404 | unknown_type | That task type doesn't exist. |
429 | rate_limited | Too many requests. Use the webhook instead of polling. |
Technical notes
This calculator accepts market capitalization, total debt, and cash equivalents as finite numbers in one currency, adds the first two, subtracts cash, and returns enterprise value as a deterministic JSON contract. Negative market capitalization is rejected with invalid_input because a listed equity stub cannot print below zero in this identity.
What enterprise value measures and how the identity is formed
This tool adds market capitalization to total debt, subtracts cash equivalents, and returns enterprise_value. The same identity is often written as equity value plus net debt, where net_debt is total debt minus cash. Because a listed market capitalization cannot be negative in this identity, a market_cap below zero fails with invalid_input instead of a nonsense takeout price. The calculator does not add preferred stock or non-controlling interest unless you already folded those claims into total_debt, does not convert currencies, and does not apply a control premium: those belong on the football field.
Input contract, response shape, and error behaviour
POST a JSON body that supplies market_cap, total_debt, and cash_equivalents. market_cap is the equity stub in a single currency unit, a finite number that must not be negative, with aliases market_capitalization, marketcap, mkt_cap, equity_value, and market_value. total_debt is interest-bearing borrowings in the same currency on the same date, a finite number greater than or equal to zero, with aliases debt, interest_bearing_debt, and total_interest_bearing_debt. cash_equivalents is surplus cash and short-term investments a buyer can apply against that debt, a finite number greater than or equal to zero, with aliases cash, cash_and_equivalents, cash_and_cash_equivalents, and surplus_cash. Each numeric field may arrive as a JSON number or as a numeric string. Missing market_cap, missing total_debt, missing cash_equivalents, empty strings, non-finite values, or a magnitude above the declared limit fail with invalid_input naming the field and are not billed. Negative market capitalization is the error this landing exists to catch: the message contains market_cap and must not be negative so a form can highlight that control instead of showing a global alert. Negative total_debt and negative cash_equivalents are likewise rejected, because those stocks are not the claims the takeout identity describes. On success the body echoes the three inputs, returns net_debt as total debt minus cash, returns enterprise_value as the rounded identity, and includes a formula string restating the sum. Example: market_cap of one billion against total_debt of two hundred fifty million and cash_equivalents of fifty million yields enterprise_value of 1.2 billion and net_debt of two hundred million. Example: a cash box with cash above debt yields negative net_debt and an enterprise value below market cap rather than a silent empty payload. Pair the figure with your own sector median or EBITDA multiple if the memo needs a cheap or expensive flag; this endpoint computes enterprise value only and does not invent a comps verdict.
Where an enterprise value calculator earns its keep
Equity research, buy-side screens, and M&A teasers rank for enterprise value calculator because a comps table and a takeout model think in EV, not in a raw market cap. Corporate development and private-equity associates live on confidential-information-memorandum figures; adding teaser equity value to advertised net debt gives the same print without forcing an analyst to remember whether a cell already subtracted cash. Educators teaching CFA-style valuation can seed classroom examples that fail loudly on a negative market capitalization instead of printing a takeout price a student might treat as a bargain. Failed validation does not consume balance. Public-markets scanners use the same identity on filing market cap against reported debt and cash, and the JSON contract does not care which story produced the three inputs. Keep market_cap non-negative, pin the rounded enterprise_value field in tests, and you get a reproducible firm value for widgets, course modules, and edge workers without standing up a comps engine of your own. Portfolio scripts can call the same module in a loop over many tickers; each item is one request, the unit is item, and the free browser path remains byte-for-byte identical to the API so a landing-page preview never lies about the figure that will be stored after a save.
Technical questions
How is enterprise value calculated from market cap, debt, and cash?
Send finite numbers market_cap, total_debt, and cash_equivalents. The API returns enterprise_value as market_cap plus total_debt minus cash_equivalents, rounded to six decimal places, plus net_debt as total_debt minus cash_equivalents.
What happens if market capitalization is negative?
The task fails with invalid_input. A negative market_cap is not a valid equity stub for this identity, so the call is not billed.
Can cash exceed debt, so net debt is negative?
Yes. A cash box with surplus cash above interest-bearing debt yields negative net_debt and an enterprise value below market cap.
Does this calculator include preferred stock or non-controlling interest?
Not as separate fields. The identity is market_cap plus total_debt minus cash_equivalents. Fold preferred stock or NCI into total_debt in the calling application if the teaser treats those claims as debt-like.
What does the enterprise value calculator cost?
The browser tool is free. API requests use prepaid KIT balance at $0.002 per successful call; invalid input is not billed.