Enterprise Value

Calculates the Enterprise Value (EV) of a company. The Enterprise Value (EV) is a measure of a company’s total value, often used as a more comprehensive alternative to market capitalization. It is calculated as the sum of a company’s market capitalization, outstanding debt, minority interest, and preferred equity, minus the cash and cash equivalents.

The formula is as follows:

• Cash and Cash Equivalents

Also known as: EV, total enterprise value.

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Calculate the Enterprise Value in Python

The Enterprise Value is available in the Ratios module of the open-source Finance Toolkit. Install it with:

pip install financetoolkit -U

Then call get_enterprise_value as shown below.

from financetoolkit import Toolkit

toolkit = Toolkit(["AAPL", "TSLA"], api_key="FINANCIAL_MODELING_PREP_KEY")

enterprise_value = toolkit.ratios.get_enterprise_value()

Which returns:

Parameters

get_enterprise_value accepts the following parameters:

• show_daily (bool, optional): Whether to show daily data. Defaults to False.
• diluted (bool, optional): Whether to use diluted shares in the calculation. Defaults to True.
• rounding (int, optional): The number of decimals to round the results to. Defaults to 4.
• growth (bool, optional): Whether to calculate the growth of the ratios. Defaults to False.
• lag (int | str, optional): The lag to use for the growth calculation. Defaults to 1.
• standardize (bool, optional): Whether to standardize (Z-Score) the result. When combined with growth=True, standardizes the growth values instead of the raw values. Defaults to False.
• trailing (int): Defines whether to select a trailing period. E.g. when selecting 4 with quarterly data, the TTM is calculated.

Related Valuation Ratios

The Ratios module page introduces the module, and the sidebar lists all of its functions.