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:
\[\text{Enterprise Value} = \text{Market Capitalization} + \text{Total Debt} + \text{Minority Interest} + \text{Preferred Equity}\]- Cash and Cash Equivalents
Also known as: EV, total enterprise value.
Enterprise Value in Python
get_enterprise_value is part of 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:
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| AAPL | 3.09629e+12 | 2.23005e+12 | 3.13835e+12 | 3.94761e+12 | 4.15562e+12 |
| TSLA | 1.18544e+12 | 4.1874e+11 | 8.59544e+11 | 1.41088e+12 | 1.5792e+12 |
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.