Enterprise Value Calculator

Enterprise value (EV) = the market value of shares + debt − cash. Enter every amount in ₹ crore. This calculator also divides EV by EBITDA, meaning earnings before interest, taxes, depreciation and amortisation, when that earnings measure is positive. EV/Revenue uses assumed sales because there is no revenue input. Zero debt or cash silently becomes a preset amount, so this tool cannot faithfully model a debt-free or zero-cash company.

Use crore consistently across the four fields

The fields are Market Capitalization, Total Debt, Cash & Equivalents and EBITDA (Optional). They are labelled in ₹ crore. If you enter crore amounts throughout, Enterprise Value and Net Debt remain crore amounts, even though the result card may show only the rupee symbol. The arithmetic does not convert an input from crore into individual rupees.

Market Capitalization is the equity value you want to use. Total Debt asks for short-term and long-term borrowings. Cash & Equivalents is the cash deduction. EBITDA means earnings before interest, taxes, depreciation and amortisation. It is an earnings measure before those expenses, rather than cash remaining in a bank account.

Use matching accounts and periods. If debt and cash come from consolidated accounts, use an earnings measure covering the same group. Keep the valuation date of market capitalisation alongside the balance-sheet date. A current market price and an older financial statement can be combined for research, but that timing difference should be visible in your notes.

Worked example: build EV from the equity value

Take a fictional business with Market Capitalization ₹1,000 crore, Total Debt ₹300 crore, Cash & Equivalents ₹100 crore and annual EBITDA ₹200 crore. Assume no additional security claims need to be added. These are made-up figures, not the accounts of a listed company. Enter 1,000, 300, 100 and 200 in the corresponding fields.

The Enterprise Value card prints ₹1,200 for this input convention. Read it as ₹1,200 crore, not individual rupees. Net Debt shows the ₹200 crore difference between borrowings and cash. The EV/Market Cap result expresses the bridge from equity value to simplified enterprise value; it is not an investment return.

The same result can be written as market capitalisation plus net debt: ₹1,000 crore + ₹200 crore = ₹1,200 crore. Be careful not to enter net debt in Total Debt and then subtract cash again. That would count the cash deduction twice.

Which value belongs with which earnings measure?

Damodaran’s NYU material on value multiples distinguishes equity-value ratios from firm-value ratios and stresses consistency between their numerators and denominators. Debt included in value should match the interest adjustments made to earnings. If cash is removed from value, income from that cash should not remain in the operating denominator.

This is why a low-looking EV/EBITDA result still needs checking. A different earnings period, a different lease treatment or an adjusted earnings definition can change the denominator. Record whether the earnings are reported, adjusted, trailing or forecast before comparing companies. A positive result does not validate the quality of the earnings input.

The P/E calculator uses an equity-based comparison. The debt-to-equity calculator examines borrowing relative to equity, which is another denominator. The ROE and ROCE page looks at returns on capital. These figures can add context, but they cannot repair mismatched accounts in an EV multiple.

The EV/Revenue card assumes a sales figure

The form has no Revenue input. Instead, the calculation makes an internal revenue estimate from the EBITDA amount. For the fictional example above, it assumes revenue of ₹1,000 crore and prints EV/Revenue of 1.2. That is an internal scenario, not an observed sales figure. It must not be quoted as the company’s actual EV/Sales.

To calculate a real sales multiple separately, divide EV by verified annual revenue using the same units and reporting scope. For an additional made-up illustration, if that business instead reported revenue of ₹800 crore, EV/Revenue would be 1,200 ÷ 800 = 1.5. The form cannot accept that revenue amount, so its displayed card would not reproduce this independent calculation.

Decide what qualifies as cash

The IFRS Foundation’s summary of cash and cash equivalents describes cash on hand and demand deposits, and short-term highly liquid investments convertible to known amounts with insignificant value-change risk. A line broadly called investments does not by its name establish that every item is a cash equivalent.

Read the account notes and record what you include in the deduction. A valuation convention may treat other non-operating investments separately from accounting cash equivalents. This form has only one cash field and cannot classify those items for you. It also cannot determine whether reported cash is available for a transaction or needed by the operating business.

The NYU lecture on value/EBITDA also separates the no-cash value comparison from the earnings associated with cash and marketable securities. Keep that treatment consistent rather than choosing a larger cash deduction simply to make EV smaller.

What is missing from the simplified bridge

This form has no fields for preference shares or non-controlling interests, meaning other owners’ claims on a subsidiary included in the group accounts. It cannot fully value a business requiring those adjustments. Neither amount can be supplied through the displayed fields.

Acquisition Cost repeats the EV result. It is not an independently priced takeover offer or the cash an acquirer must fund. Transaction costs, financing choices, debt terms, working-capital adjustments and the negotiated deal structure are not collected. Do not treat the repeated value as a complete acquisition budget.

Valuation Status applies fixed EV/EBITDA bands across all entries. It has no sector selector, growth forecast, peer accounts or capital-spending input. The label cannot establish that a company is cheap or expensive relative to a suitable comparison group. Debt Impact and Comparison Tip are explanatory rules; neither demonstrates a future change in the share price.

Zero, blank and loss-making inputs need extra care

Zero or blank market cap, debt and cash can be replaced with preset amounts. That makes a genuinely debt-free or zero-cash company unreliable to model here. Leaving optional EBITDA blank also inserts an earnings assumption. Do not read the resulting multiple as though you had supplied a verified EBITDA.

When EBITDA is negative, the ratio card is forced to zero rather than showing the signed division. A zero display in that situation is not evidence of a zero earnings multiple or a bargain. The simple EV bridge can also be negative if cash exceeds equity value plus debt; that arithmetic needs investigation of the underlying claims and cash, rather than a favourable investment conclusion.

Enterprise value questions

Sources

• NYU: value-multiple consistency; NYU: cash adjustments; IFRS Foundation: cash definitions. Checked 15 Oct 2026.