Enterprise Value (EV) Calculator
Consider that you want to make an investment in a company. Before putting your hard earned money to use, it is important to get a feel of the financial situation of the company. This is where the Enterprise Value factor comes into play. Enterprise Value (EV) defines the financial standing that a company has. The concept is very similar to market capitalization but EV also incorporates the cash values and debts that a company has.
How does this EV calculator beneficial?
When you talk about financial calculations, even a small error can show a huge deficit or surplus. This is simply because transactions are connected to each other. Thus, using an online calculator is very much essential. Checking all EV calculators on the internet is an unwanted task even if you have the time. Most options have authenticity problems which users figure out when they start using the tool. This tool is dependable and you can easily count on the produced results.
A free tool that is simple to operateA simple fact about top notch tools is that they are paid. However, users of this tool do not have to go through any such problem as this tool is completely free. All the features of this tool are free and users do not have to face any usage restrictions. In other words, you can determine the EV for as many sets of values as you want.
Quick results without any accuracy compromisesDo you have to wait for the outputs to be produced? The answer to this question is no. You do not have to wait for getting the EV value. This is a quick tool that incorporates the values and produces fast results. Performing manual calculations simply means that you have to recheck the answers. This means you have to put in extra time after the calculation process has been completed. All this time can be saved if you are using this EV calculation. Secondly, there is no need to think about accuracy problems.
How is this EV calculator used? The steps are very simple which is why a lot of people select it. You can gain more insight by reading the steps mentioned below.
Enter the financial inputsThere are related text boxes for each input the user has to enter. You need to provide values for market capitalization, minority interest, preferred shares, value of debt and cash equivalents. The following formula is used for calculation.
EV = Market Capitalization + Total Debt – Cash and its equivalents
Produced outputs and a proper exampleAfter the inputs have been entered, the “calculate” button is clicked. This would produce the EV value shown on the right. Through an example, we can extract a higher understanding level. Consider that you have the following values
Market capitalization = 1000
Minority Interest = 10
Preferred Shares = 7
Value of Debt = 15
Cash and equivalents = 8
Thus, when you plug in the values given above, the value of EV would be 1024.