Enterprise Value and Valuation Multiples Calculator
Reviewed by Finin2min Editorial Desk · Last reviewed 11 August 2026
Calculate enterprise value, equity value, EV/Revenue, EV/EBITDA and P/E from market and financial inputs.
Calculate valuation multiples
Enterprise value
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EV / EBITDA
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EV / Revenue
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P / E
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Normalise one-offs, leases, pension deficits and non-operating assets before comparing peers.
How This Is Calculated
Enterprise Value (EV) = equity value + debt + minority interest − cash — representing the total value of the business independent of its capital structure. This calculator then computes common valuation multiples (EV/Revenue, EV/EBITDA, P/E) which are used to compare a company's valuation against peers or historical benchmarks.
Frequently Asked Questions
Why subtract cash when calculating Enterprise Value?
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Because cash on the balance sheet isn't part of the operating business being valued — it's effectively available to offset debt or be distributed, so subtracting it (net of debt) gives a cleaner measure of what the actual operating business is worth, independent of its cash position.
Why use EV/EBITDA instead of P/E for comparing companies?
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EV/EBITDA is capital-structure-neutral (it uses Enterprise Value, which includes debt, rather than just equity value) and ignores non-operating items like interest and taxes, making it more useful for comparing companies with different debt levels or tax situations than P/E, which is affected by both.
Scope: Computes common valuation multiples (EV/Revenue, EV/EBITDA, P/E) from entered financial figures, and applies them to estimate an implied valuation range for a target company.
Calculation logic
Enterprise Value (EV) = Market capitalisation + Total debt − Cash and cash equivalents (for a comparable company, if computing its multiple; for the target, EV is the output being solved for).
EV/Revenue multiple = Enterprise Value ÷ Revenue; EV/EBITDA multiple = Enterprise Value ÷ EBITDA; P/E ratio = Market capitalisation ÷ Net income (or Share price ÷ Earnings per share).
To estimate an implied valuation for a target company, the calculator applies a comparable company's or peer-group's multiple to the target's corresponding financial metric (e.g., Target EV = Peer EV/EBITDA multiple × Target EBITDA).
Inputs and assumptions
Comparable multiples entered should come from genuinely comparable companies (similar sector, growth profile, margin structure) for the implied valuation to be meaningful — the calculator applies whatever multiple the user enters without independently verifying comparability.
EBITDA and net income figures used should be normalised for one-time/non-recurring items for a more representative multiple, per standard valuation practice.
Exclusions and edge cases
This is a relative (market-multiple) valuation approach, not an intrinsic (DCF) valuation — the two can produce materially different results and are best used together, not as substitutes.
Does not source live market multiples for any specific peer set — all comparable-company figures must be entered by the user.
Sources
No external regulatory source applies — this is a general financial formula, not a statutory computation.
Review status: reviewed and approved by CA Nikhil Gupta on 17 July 2026.
Guides on this topic
Background, worked examples and the rules behind these numbers.
Finin2min is not registered with the Securities and Exchange Board of India (SEBI) as an Investment Adviser or as a Research Analyst. This tool performs an arithmetic calculation on the figures you enter and is published for general information and educational purposes only. It is not investment advice, it is not personalised to your financial circumstances, objectives or risk tolerance, and it is not a recommendation to buy, sell or hold any security, scheme or product. Projected values are illustrative and follow directly from the assumptions you supply; actual returns will differ, and past performance does not indicate future results. Consider consulting a SEBI-registered Investment Adviser before acting on any investment decision.