Enterprise Value (EV) is a measure of a company’s total value and takes into account not just the market capitalization, but also the company’s debt obligations, minority interests, and preferred shares. To calculate the EV of a private company, you need to know two things – the company’s equity value and its non-equity liabilities. Equity value is calculated by taking the market capitalization and subtracting out any cash or cash equivalents held on the balance sheet. Non-equity liabilities consist of short- and long-term debt obligations as well as any commitments to outside investors such as preferred stockholders. Once those numbers are in hand, simply add the two together to arrive at the enterprise value. It’s the figure that truly gives an accurate picture of a company’s value.