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 valueEnterprise ValueEnterprise Value, or Firm Value, is the entire value of a firm equal to its equity value, plus net debt, plus any minority interest, used in valuation. It looks at the entire market value rather than just the equity value, so all ownership interests and asset claims from both debt and equity are included. (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 flowUnlevered Free Cash FlowUnlevered Free Cash Flow is a theoretical cash flow figure for a business, assuming the company is completely debt free with no interest expense. in a DCF modelDCF Model Training Free GuideA DCF model is a specific type of financial model used to value a business. The model is simply a forecast of a company’s unlevered free cash flow 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 valueEquity ValueEquity value can be defined as the total value of the company that is attributable to shareholders. To calculate equity value follow this guide from CFI. (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 flowFree Cash Flow (FCF)Free Cash Flow (FCF) measures a company’s ability to produce what investors care most about: cash that's available be distributed in a discretionary way in a DCF modelDCF Model Training Free GuideA DCF model is a specific type of financial model used to value a business. The model is simply a forecast of a company’s unlevered free cash flow 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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