Free Enterprise Value (EV) to Equity Value Calculator

Step 1: Operating Earnings, Valuation Multiples, Net Debt & Capital Structure

Valuation & Capital Structure Inputs

📈 Operating P&L & Valuation Multiples

LTM Revenue ($)

LTM EBITDA ($)

EV / EBITDA Multiple (x)

Diluted Shares Outstanding

⚖️ Balance Sheet Bridge Adjustments

Total Debt ($)

Short & long term loans.

Cash & Equivalents ($)

Unrestricted cash.

Preferred Stock ($)

Minority Interest ($)

Non-Op Assets ($)

Net Working Capital (NWC) Peg Surplus / (Deficit) ($)

Enterprise Value (EV)

$168.00M

14.0x EV/EBITDA multiple (3.36x EV/Sales on $50.00M revenue)

Implied Equity Value

$178.00M

Net Equity Value (106.0% of total Enterprise Value)

Implied Share Price

Net Debt / (Cash)

-$10.00M

Net Cash Position: $10.00M ($5.00M Debt minus $15.00M Cash)

Valuation Matrix: LTM EBITDA ($) vs. EV/EBITDA Multiple (x)

Simulates Implied Share Price ($/share) and Net Equity Value ($M) across operational performance and multiple expansion tiers.

LTM EBITDA	7.0x Multiple	9.0x Multiple	11.0x Multiple	13.0x Multiple	15.0x Multiple	17.0x Multiple

Investment Banking Principles

Understanding the EV to Equity Bridge

Key corporate valuation, M&A waterfall, and capital structure principles:

Enterprise Value vs. Equity Value: Enterprise Value represents core operating assets independent of capital structure. Equity Value reflects the value available strictly to equity holders.
Net Debt Treatment: Debt holders have senior liquidation priority over common shareholders. Cash can be used to pay down debt, so Net Debt ($ ext{Debt} - ext{Cash}$) is deducted.
Minority Interest & Preferred Equity: Fully consolidated financial statements include 100% of subsidiary EBITDA. Non-controlling interest must be subtracted to reflect only the parent company's equity share.
Working Capital Adjustments: Normalizes seasonal cash flow variations in transaction agreements via NWC peg adjustments.

Evaluate capital leverage in the Debt-to-Equity Lab.

Mathematical Formulation

EV Bridge & Waterfall equations

ext{Enterprise Value (EV)} = ext{LTM EBITDA} imes ext{EV/EBITDA Multiple}

ext{Net Debt} = ext{Total Debt} - ext{Cash & Cash Equivalents}

ext{Equity Value} = ext{EV} - ext{Total Debt} + ext{Cash} - ext{Preferred} - ext{Minority Int} + ext{Non-Op Assets} + ext{NWC Adj}

ext{Implied Share Price} = rac{ ext{Equity Value}}{ ext{Diluted Shares Outstanding}}

ext{EV / Sales Multiple} = rac{ ext{Enterprise Value}}{ ext{LTM Revenue}}

Analyze buyout financing structures in the LBO Lab.

FAQ

Enterprise value to equity value questions

What is the difference between Enterprise Value (EV) and Equity Value?

Enterprise Value (EV) measures the total value of a company's underlying core operations accessible to all capital providers (debt and equity). Equity Value represents the remaining value attributable strictly to common shareholders after settling net debt.

What is the standard EV to Equity Value Bridge formula?

Equity Value = Enterprise Value - Total Debt + Cash & Cash Equivalents - Preferred Stock - Minority Interest + Non-Operating Assets + Net Working Capital Adjustments.

Why is cash added and debt subtracted in the EV bridge?

In an acquisition, the buyer assumes debt (which must be paid off or serviced) and acquires cash (which reduces the net purchase cost), so debt reduces common equity proceeds while cash increases them.

What is a Net Working Capital (NWC) peg adjustment?

In M&A purchase agreements, if closing NWC exceeds the agreed peg, the buyer pays a dollar-for-dollar upward equity adjustment. If closing NWC is deficient, equity value is reduced.

Can I export EV bridge valuation schedules to CSV?

Yes. You can export complete EV and equity value components, Net Debt balances, share price waterfalls, and 6x6 sensitivity matrices as a UTF-8 CSV spreadsheet with formula defense.

Continue Exploring Corporate Finance & Valuation Tools

Explore our Cash Flow Hub, model capital structure in the Debt-to-Equity Lab, calculate cost of capital in the WACC Lab, analyze leveraged buyout returns in the LBO Lab, or evaluate corporate solvency in the Altman Z-Score Lab.