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 + Short Term Investments)

Enterprise value is the price of the whole business, equity and debt together, which makes it the right numerator for multiples of operating results such as EV to EBITDA or EV to sales, and comparable across companies with different capital structures. Cash and marketable securities (short-term investments) are both deducted (Damodaran), since both are available to pay off the debt. Enterprise value is a point-in-time value: the market cap and the balance sheet items are taken at the end of each period, or on each day with show_daily, where each day uses the balance sheet of the latest period that has ended.

Also known as: EV, total enterprise value.

Enterprise Value in Python or via the MCP

Install the Finance Toolkit with:

pip install financetoolkit -U

Then call get_enterprise_value as shown below.

from financetoolkit import Toolkit

toolkit = Toolkit(
    ["NFLX", "DIS", "WBD"],
    api_key="FINANCIAL_MODELING_PREP_KEY",
    start_date="2021-01-01",
    end_date="2025-12-31",
)

toolkit.ratios.get_enterprise_value()

Or, after setting up the Finance Toolkit MCP, ask:

Which returns:

Parameters

get_enterprise_value accepts the following parameters.

Related Valuation Ratios