Enterprise Value (EV)

Valuation
Updated Apr 2026 • Has calculator

The total value of a business — equity plus debt minus cash.

What is Enterprise Value?

Enterprise value (EV) represents the theoretical takeover price of a company by summing its market capitalisation and total debt, then subtracting cash and cash equivalents. Unlike market cap, EV reflects the full capital structure, making it the preferred numerator when constructing valuation multiples such as EV/EBITDA and EV/Sales. Because an acquirer would assume the target's debt but also take possession of its cash, EV provides a capital-structure-neutral basis for comparing companies with different financing choices.

Formula

EV = Market Cap + Total Debt − Cash & Equivalents

Worked Example

Worked example — Apple Inc. (AAPL)

FY2024 (Sept 28, 2024)

Step 1  Market cap: $3,490,066M ($3.49T)
Step 2  Total debt: $97,341M
Step 3  Cash & marketable securities: $157,276M
Step 4  EV = $3,490,066M + $97,341M − $157,276M = $3,430,131M
Step 5  → Acquiring Apple would require ~$3.43T accounting for debt and cash

Source: Apple Annual Report FY2024 (2024-11-01)

Calculate Enterprise Value

Share price × shares outstanding (USD millions)

Total short-term and long-term debt (USD millions)

Cash, equivalents, and short-term marketable securities (USD millions)

Enterprise Value

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Not investment advice.

How to Interpret Enterprise Value

< 1000
Small enterprise — under $1B
1000 – 10000
Mid-size — $1B to $10B
10000 – 100000
Large enterprise — $10B to $100B
> 100000
Mega enterprise — over $100B
Sources
  1. Apple Inc. — Annual Report FY2024
  2. CFA Institute — Equity Valuation, 4th ed.
  3. Investopedia — Enterprise Value