The formula to calculate the enterprise value is:
EV=MC+D+MI+PS−C
Where:
Enterprise value is a financial term used to describe the value of a company based on market cap, debt, minority interest, preferred shares, and cash.
Let's assume the following values:
Using the formula to calculate the enterprise value:
EV=100,000,000+20,000,000+5,000,000+10,000,000−15,000,000=120,000,000
The Enterprise Value (EV) is $120,000,000.