Enterprise Value and Equity Value Calculator
Understanding Equity Value and Enterprise Value
Equity Value represents the value of a company’s shares. It is the value attributed to shareholders and can be calculated by subtracting debt from enterprise value and adding cash.
Enterprise Value represents the total value of a company, including both equity and debt. It can be calculated by adding debt to equity value and subtracting cash.
Equity Value is used when the focus is on the value available to shareholders. It’s helpful for comparing companies with different capital structures.
Enterprise Value is used when valuing the entire company, regardless of capital structure. It’s useful for comparing companies with different levels of debt and cash.