A company’s enterprise value is equal to its market capitalization, or market cap, plus its total debt minus its cash. While a company’s market cap represents the market value of only its common stock, its enterprise value is the value of the company as a whole, including its debt. A company can buy, or take over, another company by buying all of its common stock, but it would also be taking on the target company’s debt and gaining its cash. Enterprise value is equivalent to the total takeover price to own a company free and clear of debt.

Find a public company’s most recent balance sheet in either its quarterly report on Form 10-Q, or in its 10-K annual report. You can obtain these reports from the investor relations section of its website, or online from the U.S. Securities and Exchange Commission’s EDGAR database.

Identify the amount of the company’s total liabilities and the amount of its cash, listed on its balance sheet. The amount of a company’s total liabilities is equivalent to its total debt. For example, assume a company has $50,000 in total liabilities and $20,000 in cash.

Visit a financial website that provides stock information. Find the amount of the company’s market cap. In the example from the previous step, assume the company has a market cap of $100,000.

Add together the company’s total liabilities and market cap. In this example, add the $100,000 market cap and $50,000 in total liabilities to get $150,000.

Subtract the company’s cash from your result to calculate its enterprise value. Continuing with the example, subtract $20,000 in cash from $150,000 to get $130,000 in enterprise value.