Enterprise Value vs Equity Value Calculator
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Enterprise Value vs. Equity Value Calculator
This enterprise value vs. equity value calculator will allow you to compare the equity value of two companies with the same enterprise value but different capital structures.
This is what the enterprise value vs. equity value calculator looks like:
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Enterprise Value
The enterprise value (which can also be called firm value or asset value) is the total value of the assets of the business (excluding cash). When you value a business using unlevered free cash flow in a DCF model you are calculating the firm’s enterprise value.
If equity, debt, and cash are known then you can calculate enterprise value as follows:
EV = (share price x # of shares) + total debt – cash
Where EV equals Enterprise Value.
Equity Value
The equity value (or net asset value) is the value that remains for the shareholders after any debts have been paid off. When you value a company using levered free cash flow in a DCF model you are determining the company’s equity value.
If enterprise value, debt, and cash are all known then you can calculate equity value as follows:
Equity value = Enterprise Value – total debt + cash or Equity value = # of shares x share price
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Analyst Certification FMVA® Program
Below is a break down of subject weightings in the FMVA® financial analyst program. As you can see there is a heavy focus on financial modeling, finance, Excel, business valuation, budgeting/forecasting, PowerPoint presentations, accounting and business strategy.
A well rounded financial analyst possesses all of the above skills!
Additional Questions & Answers
CFI is the global institution behind the financial modeling and valuation analyst FMVA® Designation. CFI is on a mission to enable anyone to be a great financial analyst and have a great career path. In order to help you advance your career, CFI has compiled many resources to assist you along the path.
In order to become a great financial analyst, here are some more questions and answers for you to discover:
- What is Financial Modeling?
- How Do You Build a DCF Model?
- What is Sensitivity Analysis?
- How Do You Value a Business?
