Equity Value Calculator

Formula

The formula to calculate the Equity Value (EV) is:

\[ EV = MC + D + MS + PS + C - D \]

Where:

$ EV $ is the Equity Value
$ MC $ is the Market Capitalization
$ D $ is the Total Debt
$ MS $ is the Minority Shareholding
$ PS $ is the Preferred Shares
$ C $ is the Cash and Cash Equivalents
$ D $ is the Dividends

What is Equity Value?

Equity value is a financial metric for determining the value of a company's stock and its cash holdings. It measures the company's overall value but does not take into account its revenue or profit for any given period. Equity value helps investors assess the worth of a company's stock offerings.

Example Calculation

Let's assume the following values:

Market Capitalization (MC) = $500,000
Total Debt (D) = $200,000
Minority Shareholding (MS) = $50,000
Preferred Shares (PS) = $100,000
Cash and Cash Equivalents (C) = $300,000
Dividends (D) = $20,000

Using the formula to calculate the Equity Value (EV):

\[ EV = 500,000 + 200,000 + 50,000 + 100,000 + 300,000 - 20,000 = 1,130,000 \]

The Equity Value (EV) is $1,130,000.