From Enterprise Value to Equity Value, step by step
ValuBridge provides a structured way to reconcile Enterprise Value to indicative Equity Value using transaction working capital, cash, debt-like items and non-operating assets. The calculation runs entirely in your browser and every adjustment remains visible.
No account required. Financial inputs are processed in your browser and are not saved.
A structured four-step equity bridge
The workflow follows the same logic from initial Enterprise Value through to the final indicative Equity Value, while keeping the underlying classifications and adjustments transparent.
Enterprise Value
Enter the Enterprise Value being used for the transaction, together with an optional company or transaction reference, display currency and relevant balance-sheet or completion date.
Enterprise Value is supplied by the user — ValuBridge does not determine the valuation of the underlying business.
Balance Sheet
Enter the balance-sheet items relevant to the transaction and review how each item should be treated in the bridge.
Each balance is assigned a single classification to prevent double counting.
Review & Adjust
Set the target or normalised working capital and, where appropriate, calculate the minimum operating cash that should remain in the business. Review the resulting working-capital, cash and debt position before finalising the bridge.
All assumptions remain visible and editable before the final result is produced.
Equity Value
Review the complete Enterprise Value to Equity Value reconciliation, including the waterfall, working-capital adjustment, cash and debt reconciliation, non-operating assets and classification summary.
The result can be printed or saved as a PDF directly from the browser.
How Enterprise Value becomes Equity Value
ValuBridge separates the principal completion adjustments so that the movement from Enterprise Value to indicative Equity Value can be followed line by line.
The contractual treatment of individual items depends on the relevant transaction documents and agreed completion mechanism.
Each balance is given one treatment
One of the main purposes of ValuBridge is to make the treatment of balance-sheet items explicit. Every entered line is assigned to one category only, reducing the risk of the same item being included in more than one part of the bridge.
Operating
Items used in calculating transaction working capital, such as inventory, trade receivables, trade creditors and relevant operating accruals.
Cash
Cash and qualifying cash balances considered separately from operating working capital.
Debt-like
Borrowings and other items treated as debt for the bridge, subject to the transaction-specific treatment agreed between the parties.
Non-operating
Assets outside the core operating business that may be added separately to Equity Value.
Outside Equity
Balances excluded from the Enterprise Value to Equity Value calculation because they are outside the equity attributable to the target shareholders.
Excluded
Items retained for balance-sheet completeness or reconciliation but not used in the bridge calculation.
Default classifications are provided for convenience, but they are editable because treatment can vary between transactions.
Current working capital versus the agreed target
ValuBridge calculates current operating working capital from the balances classified as operating current assets and operating current liabilities.
Where current working capital is above the target, the adjustment increases indicative Equity Value. Where it is below the target, it reduces indicative Equity Value.
The target or normalised working-capital level is a transaction assumption supplied by the user. It should normally reflect the methodology agreed or being considered for the transaction.
Separate usable cash from the cash the business needs to retain
Where enabled, ValuBridge estimates a minimum operating cash requirement using:
This amount is retained in the business and is therefore not credited to Equity Value.
If credited cash exceeds debt-like items, the result is net cash and increases indicative Equity Value rather than reducing it.
Minimum operating cash is a modelling assumption rather than a universal transaction rule and can be switched off where it is not appropriate.
A transparent result rather than a single unexplained number
Equity Bridge Summary
Enterprise Value and every adjustment through to indicative Equity Value.
Waterfall
A visual reconciliation of the positive and negative movements in the bridge.
Working Capital Reconciliation
Current working capital, target working capital and the resulting adjustment.
Cash & Debt Reconciliation
Total cash, retained operating cash, cash credited, debt-like items and net debt or net cash.
Classification Summary
A transparent view of how the entered balance-sheet items have been treated.
Balance-sheet Check
A reconciliation check comparing net assets with shareholders’ funds to help identify incomplete or inconsistent entries.
The balance-sheet reconciliation is a data-entry check. It does not form part of the Enterprise Value to Equity Value formula.
Keep a professional record of the analysis
The final results view is formatted for printing and can be saved as a PDF using your browser’s native print function. The report includes the principal bridge calculations, reconciliations, classifications, methodology and relevant disclaimers.
No financial information needs to be uploaded to generate the report.
Processed locally in your browser
ValuBridge does not require an account to use the calculator. Financial inputs are held only in the current browser session, calculations run locally, and the figures are not uploaded or saved by ValuBridge. Refreshing or closing the page clears the working inputs.
Read the Privacy PolicyExplore the methodology in more detail
Worked Example
See a complete fictional bridge that reconciles from Enterprise Value to Equity Value.
ViewMethodology
Review the calculation rules and treatment applied by the ValuBridge engine.
ViewEquity Bridge Guide
Understand the concepts behind working capital, net debt, cash and non-operating assets.
ViewBuild an Equity Bridge
Enter the transaction assumptions and see exactly how Enterprise Value reconciles to indicative Equity Value.