Answer first
What this calculator tells you
Calculate market capitalization and enterprise value from share price, shares, debt and cash. Size a company by what the whole business costs to buy, not only its stock. Formula: Market cap = share price × shares outstanding; enterprise value = market cap + debt − cash. At the worked-example inputs, the market capitalization is $15,000,000,000. Holding every other input steady, moving share price from $120 to $180 moves the result from $12,000,000,000 to $18,000,000,000.
Transparent method
The formula
Size a company by what the whole business costs to buy, not only its stock.
Worked example
Example inputs
How to interpret the result
Market cap is what the stock market says the shares are worth, and enterprise value is what it would cost to buy the whole business. Add the debt a buyer inherits, subtract the cash they get to use, and $15 billion of market cap becomes $17.5 billion of enterprise value. Two firms with the same market cap can carry very different debt, and only enterprise value shows it.
At the worked-example inputs the market capitalization is $15,000,000,000. It rises with share price and shares outstanding; total debt and cash and equivalents do not move it.
Investment returns are uncertain; taxes, fees, volatility and cash-flow timing can materially change results.
Before you rely on it
What to check
Pull the debt and cash from the latest balance sheet. Stale figures from an old filing can move enterprise value by more than the gap you are trying to measure.
The common error
Where people go wrong with market cap and enterprise value calculator
Comparing market caps of companies with different debt. A heavily indebted firm looks smaller than the price of buying it outright.
Sensitivity evidence
How share price changes the market capitalization
Holding every other input at the worked-example value, moving share price from $120 to $180 moves the market capitalization from $12,000,000,000 to $18,000,000,000: a spread of $6,000,000,000, or 40% of the worked-example result.
| Share price | Market capitalization | Enterprise value |
|---|---|---|
| $120 | $12,000,000,000 | $14,500,000,000 |
| $135 | $13,500,000,000 | $16,000,000,000 |
| $150worked example | $15,000,000,000 | $17,500,000,000 |
| $165 | $16,500,000,000 | $19,000,000,000 |
| $180 | $18,000,000,000 | $20,500,000,000 |
Every input, tested
Which input moves the market capitalization most
Of the 4 inputs, share price moves the market capitalization most ($3,000,000,000 across the range tested) and shares outstanding moves it least ($3,000,000,000). Total debt and cash and equivalents do not change it at all.
| Input | Tested from | To | Market capitalization at each end | Swing |
|---|---|---|---|---|
| Share price | $135 | $165 | $13,500,000,000 to $16,500,000,000 | $3,000,000,000 (20%) |
| Shares outstanding | 90,000,000 | 110,000,000 | $13,500,000,000 to $16,500,000,000 | $3,000,000,000 (20%) |
| Total debt | $3,600,000,000 | $4,400,000,000 | $15,000,000,000 to $15,000,000,000 | none |
| Cash and equivalents | $1,350,000,000 | $1,650,000,000 | $15,000,000,000 to $15,000,000,000 | none |
Two variables at once
Market capitalization by share price and shares outstanding
Across the grid the market capitalization runs from $9,600,000,000 to $21,600,000,000. Moving share price from $120 to $180 shifts it by $6,000,000,000 at the middle column, and moving shares outstanding from 80,000,000 to 120,000,000 shifts it by $6,000,000,000 at the middle row, so neither is the bigger lever here.
| Share price \ Shares outstanding | 80,000,000 | 100,000,000 | 120,000,000 |
|---|---|---|---|
| $120 | $9,600,000,000 | $12,000,000,000 | $14,400,000,000 |
| $135 | $10,800,000,000 | $13,500,000,000 | $16,200,000,000 |
| $150 | $12,000,000,000 | $15,000,000,000 | $18,000,000,000 |
| $165 | $13,200,000,000 | $16,500,000,000 | $19,800,000,000 |
| $180 | $14,400,000,000 | $18,000,000,000 | $21,600,000,000 |
The highlighted cell is the worked example: $15,000,000,000.
Step by step
The worked example, input by input
| Input | Value used | What it means |
|---|---|---|
| Share price | $150 | Enter the share price used in this calculation. |
| Shares outstanding | 100,000,000 | Enter the shares outstanding used in this calculation. |
| Total debt | $4,000,000,000 | Enter the total debt used in this calculation. |
| Cash and equivalents | $1,500,000,000 | Enter the cash and equivalents used in this calculation. |
| Market capitalization | $15,000,000,000 | |
| Enterprise value | $17,500,000,000 | |
Inputs, definitions and assumptions
Share price
Enter the share price used in this calculation. The prefilled worked-example value is $150.
Shares outstanding
Enter the shares outstanding used in this calculation. The prefilled worked-example value is 100,000,000.
Total debt
Enter the total debt used in this calculation. The prefilled worked-example value is $4,000,000,000.
Cash and equivalents
Enter the cash and equivalents used in this calculation. The prefilled worked-example value is $1,500,000,000.
How to use this calculator
- 1Verify the inputs. Gather share price, shares outstanding, total debt and cash and equivalents from your own documents; the prefilled values are examples.
- 2Save a baseline. The worked example puts the market capitalization at $15,000,000,000. Store your own version of it as Scenario A.
- 3Test one change. Start with share price, the input with the biggest effect here: moving share price from $135 to $165 takes the market capitalization from $13,500,000,000 to $16,500,000,000, a swing of 20% of the worked-example figure.
- 4Check the extremes. At half the example share price ($75) the market capitalization is $7,500,000,000; at double ($300) it is $30,000,000,000.
People also ask
Frequently asked questions
How do you calculate market cap and enterprise value?
Market cap = share price × shares outstanding; enterprise value = market cap + debt − cash. Enter share price in dollars, total debt in dollars and cash and equivalents in dollars. At the worked-example inputs the market capitalization is $15,000,000,000.
What does the market cap and enterprise value result mean?
Size a company by what the whole business costs to buy, not only its stock. At the worked-example inputs the market capitalization is $15,000,000,000. It rises with share price and shares outstanding; total debt and cash and equivalents do not move it.
How much does share price change the market capitalization?
Holding every other input at the worked-example value, moving share price from $120 to $180 moves the market capitalization from $12,000,000,000 to $18,000,000,000, a spread of $6,000,000,000.
What are the limits of this market cap and enterprise value calculator?
Investment returns are uncertain; taxes, fees, volatility and cash-flow timing can materially change results. The tables on this page test share price only from $120 to $180; a value outside that range is not tabulated here.
Which input moves the market capitalization most in the market cap and enterprise value calculator?
Ranked by how far each moves the market capitalization across the range tested: share price ($3,000,000,000, 20%) and shares outstanding ($3,000,000,000, 20%). Total debt and cash and equivalents do not change it.
If I double share price in the market cap and enterprise value calculator, does the market capitalization double?
Doubling it from $150 to $300 takes the market capitalization from $15,000,000,000 to $30,000,000,000, which is 2.00 times the worked-example figure. So the result scales almost exactly in proportion. Halving it to $75 gives $7,500,000,000.
How much does shares outstanding matter in the market cap and enterprise value calculator?
The worked example uses 100,000,000. Holding every other input at its worked-example value, moving shares outstanding from 90,000,000 to 110,000,000 takes the market capitalization from $13,500,000,000 to $16,500,000,000, a swing of 20% of the worked-example figure.
How much does total debt matter in the market cap and enterprise value calculator?
The worked example uses $4,000,000,000. The market capitalization does not depend on total debt; it moves the enterprise value from $17,100,000,000 to $17,900,000,000 instead when total debt goes from $3,600,000,000 to $4,400,000,000.
How much does cash and equivalents matter in the market cap and enterprise value calculator?
The worked example uses $1,500,000,000. The market capitalization does not depend on cash and equivalents; it moves the enterprise value from $17,650,000,000 to $17,350,000,000 instead when cash and equivalents goes from $1,350,000,000 to $1,650,000,000.
Which inputs change the enterprise value in the market cap and enterprise value calculator?
At the worked-example inputs it is $17,500,000,000. Share price takes it from $16,000,000,000 to $19,000,000,000, shares outstanding takes it from $16,000,000,000 to $19,000,000,000, total debt takes it from $17,100,000,000 to $17,900,000,000 and cash and equivalents takes it from $17,650,000,000 to $17,350,000,000.
Sources and evidence
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