Equity Value Calculator
Convert enterprise value (EV) into equity value using cash, debt, and other adjustments (optionally per share).
DCF and multiples often produce enterprise value (EV), which represents the value of the operating business. To get equity value, you adjust EV for net debt and other claims.
This calculator computes equity value from EV, cash, debt, and optional preferred/minority/other adjustments, and can compute an implied value per share.
Prefer an explanation- Read the guide.
Enterprise value vs equity value: how to bridge EV to equityValuation modeling hub: WACC, DCF, multiples, and equity valueMultiple valuation: how to use ARR/revenue multiples and avoid mix-upsFundraising & valuation hub: pre/post-money, SAFEs, notes, and liquidation prefs
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Positive increases equity value; negative decreases (e.g., unfunded liabilities).
Tip: you can type commas (e.g., 10,000).
Example
Using the default inputs, the result is:
$46,000,000.00
- Enterprise value (EV)
- $50,000,000
- Cash (and cash equivalents)
- $8,000,000
- Total debt
- $12,000,000
- Preferred stock (optional)
- $0
- Minority interest (optional)
- $0
- Other adjustments (optional)
- 0
- Shares outstanding (optional)
- 0
How to calculate
- Enter enterprise value (from DCF or multiples).
- Enter cash and debt to compute net debt adjustment.
- Optionally add preferred stock, minority interest, and other adjustments.
- Optionally enter shares outstanding to compute implied value per share.
Formula
Equity value = enterprise value + cash - debt - preferred - minority + other adjustments
- Treats cash and debt as the primary bridge from EV to equity value.
- Preferred stock and minority interest are modeled as claims ahead of common equity (simplified).
- Other adjustments can represent items like pensions, leases, or non-operating assets/liabilities (simplified).
FAQ
Why does DCF give enterprise value instead of equity value-
Many DCFs discount unlevered free cash flows (available to all capital providers), producing EV. You then bridge to equity value using net debt and other claims.
What about working capital, leases, and other liabilities-
A full valuation model would treat those explicitly. This tool keeps the bridge simple; use 'other adjustments' for major non-standard items and rely on a full model for precision.
Common mistakes
- Mixing enterprise value and equity value multiples (different denominators).
- Forgetting off-balance-sheet items or other claims (simplified model).
- Using inconsistent dates for EV and balance sheet inputs.
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Quick checks
- Use consistent time units (monthly vs annual) when entering rates and cash flows.
- Run a sensitivity check on the input that drives the result most (often discount rate or growth).
- Treat the output as a decision aid, not a prediction; validate assumptions with reality.