Enterprise value to equity value
Debt off, cash on, per share.
By Surojit Chakraverti, founder of L3VLUP and an investor running a long-short healthcare and technology equities strategy.
On this subject: enterprise value to equity value.Updated 30 September 2026
What it does
The last step of a valuation and the first question in a valuation interview. Enterprise value belongs to every provider of capital; subtracting the claims that rank ahead of common equity, and adding the cash that is not needed to run the business, leaves what the shareholders own. Divided by diluted shares, that is the implied price.
Where it lives
The same schedule in each model that carries it, with the rows to open. Open a model in the browser, go to the sheet, and click the lines.
- Assumptions, rows 28–32: Debt, Cash, Minority interest, Diluted shares outstanding…
- Valuation, rows 29–36: Enterprise value (perpetuity method), Less debt, Plus cash, Less minority interest…
What a reviewer looks for
- Basic shares where options and convertibles are in the money.
- Operating leases treated inconsistently between the multiple and the bridge.
- Cash that is trapped or needed for operations treated as surplus.
Learn it, then build it
Build · Lab · ~12 min
EV to Equity Bridge
Walk from enterprise value to a price per share without dropping a claim: net debt, pensions, minorities, leases and options.
Read · Guide · 7 min
Enterprise Value vs. Equity Value, Once and For All
Read · Guide · 12 min
How to Build a DCF Model: Build Order, Terminal Value and the Sanity Checks
Vocabulary: Equity Value, Net Debt.