Enterprise Value (EV) and Valuation Multiples Calculator: EV/EBITDA, P/E, P/B
Calculates market capitalisation, enterprise value and the EV/EBITDA, EV/Sales, P/E and P/B multiples from the share price, share count, net debt and key financials.
Things to keep in mind:
- Multiples are affected by seasonal and one-off items; use trailing twelve-month and normalised figures.
- Lease liabilities, associates and non-operating assets must be added to the enterprise value bridge separately.
- Different accounting standards and inflation adjustment can make multiples incomparable.
- The result is not a buy/sell recommendation or investment advice.
Calculator
Result
Enter the values and press Calculate to see the result here.
About this tool
Valuation multiples compare a company's market value with its profit, sales or equity, making it easy to benchmark against peers. Enterprise value (EV) is the value of the whole company: net debt and minority interests are added to the market value of equity. Multiples based on EV (EV/EBITDA, EV/Sales) are not affected by the capital structure and suit comparisons between companies with different leverage.
Formulas
- Market capitalisation = Share price × Number of shares
- Net debt = Financial debt − Cash and equivalents
- Enterprise value = Market capitalisation + Net debt + Minority interests
- EV/EBITDA = Enterprise value / EBITDA; EV/Sales = Enterprise value / Net sales
- P/E = Market capitalisation / Net profit (= Price / Earnings per share)
- P/B = Market capitalisation / Equity (book value)
- Earnings yield = Net profit / Market capitalisation × 100 (the inverse of P/E)
Example: a company with 10 million shares trading at 50 TRY has a market capitalisation of 500 million TRY. With 300 million TRY of financial debt and 100 million TRY of cash, net debt is 200 million TRY and enterprise value 700 million TRY. With annual EBITDA of 140 million TRY, EV/EBITDA is 5.0; with net profit of 50 million TRY, P/E is 10.0; with equity of 250 million TRY, P/B is 2.0.
How to read them: a multiple alone does not mean "cheap" or "expensive"; compare it with peers in the same industry and the company's own history. A low multiple may reflect low growth expectations, high perceived risk or one-off profits. In high-inflation periods, multiples can differ markedly between inflation-adjusted and unadjusted financial statements.
How to use
- Enter the share price and the total number of shares outstanding.
- For enterprise value enter financial debt, cash and equivalents and any minority interests.
- Enter trailing twelve-month (annualised) EBITDA, net sales and net profit attributable to the parent, and equity.
- Press Calculate and compare the results with peers.
Notes
Amounts are rounded to the cent, per-share values to 4 decimals and multiples to 2 decimals (HALF_UP). If EBITDA, sales, net profit or equity is zero or negative, the related multiple shows 0, meaning "not meaningful". Earnings and book value per share can be negative. Enter net profit and equity attributable to the parent.
Sources
Frequently asked questions
Enterprise value = Market capitalisation + Financial debt − Cash and equivalents + Minority interests. It shows the theoretical cost of buying the whole company including its debt.
EV/EBITDA is less affected by capital structure, depreciation policy and tax differences, so it is better for comparing companies with different leverage.
P/E = Share price / Earnings per share, or Market capitalisation / Net profit. If the company makes a loss, P/E is not meaningful.
Market value is below the recorded value of equity. This may reflect low expected profitability, impaired assets or book values outdated by inflation.
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