Enterprise Value Calculator
Enterprise value is the most commonly used measure of a company's total economic value in mergers, acquisitions, and investment analysis. Unlike market capitalisation, which only reflects equity value, enterprise value accounts for all claims on the business: debt holders and equity holders alike, less the cash that could be used to pay off debt immediately. The EV/EBITDA and EV/Revenue multiples derived from enterprise value allow analysts to compare companies across different capital structures and leverage levels on an apples-to-apples basis. This calculator computes enterprise value and both key multiples from your inputs.
Enterprise value formula
EV = Market Cap + Total Debt - Cash and Equivalents
EV/EBITDA = Enterprise Value / Annual EBITDA
EV/Revenue = Enterprise Value / Annual Revenue
EV multiple benchmarks by sector
- SaaS / High-growth tech: EV/Revenue 5 to 15x; EV/EBITDA 20 to 50x.
- Technology (mature): EV/Revenue 3 to 8x; EV/EBITDA 15 to 25x.
- Consumer staples: EV/Revenue 1 to 3x; EV/EBITDA 10 to 15x.
- Manufacturing / Industrial: EV/Revenue 0.5 to 2x; EV/EBITDA 6 to 12x.
Enterprise value: frequently asked questions
What is enterprise value?
Enterprise value (EV) is a measure of a company's total value, including market capitalization, debt, minority interests, and preferred shares, minus cash and cash equivalents. It represents the theoretical takeover price of a business.
What is the enterprise value formula?
EV = Market Cap + Total Debt + Minority Interests + Preferred Shares - Cash and Cash Equivalents. For private companies, market cap is replaced by equity value from a recent funding round or DCF analysis.
What is a good EV/EBITDA multiple?
EV/EBITDA multiples vary significantly by industry. Consumer staples typically trade at 10 to 15x EBITDA. Technology companies often trade at 15 to 30x. High-growth SaaS companies can trade at 20 to 50x or higher during bull markets.
Why is enterprise value better than market cap for comparisons?
Market cap only reflects equity value. Enterprise value includes debt and excludes cash, making it capital-structure neutral. This allows meaningful comparison between companies with different levels of leverage or cash holdings.
What is EV/Revenue and when is it used?
EV/Revenue is used to value companies that have little or no EBITDA, such as early-stage SaaS businesses. A company with $10M ARR and 10x EV/Revenue would be valued at $100M. High-growth SaaS typically commands 5 to 15x revenue multiples.
Sources
- U.S. Securities and Exchange Commission: SEC 10-K Filings (Enterprise Value Data).
- SEC: Equity Financing Basics.
Reviewed by the CalculatorHub team, edited by James Graham, 14 June 2026. See our methodology.