What is Enterprise Value?

What is Enterprise Value? Enterprise Value (EV) can also be referred to as Business Enterprise Value (BEV) or Firm Value.

It is the company’s total value and is a more comprehensive valuation than market capitalisation, as it considers debt and cash. Therefore, it is commonly used during potential takeovers and valuation models.

Enterprise Value = Market Cap + Debt - Cash

Enterprise Value (EV) is a measure used in many financial ratios that determine a company’s performance or relative value. Example ratios include:

EV / EBIT
EV / EBITDA
EV / Free Cash Flow
EV / Revenue

Further Details & Company Data

For more detailed information, including training, templates and company figures, visit one of the below sites or software providers:

Site / SoftwareDescriptionLink
CFI – Corporate Finance InstituteTraining, detailed explanations & templatesCFI Website
FinboxDetailed company financials & modelsFinbox Website
TradingViewBasic company financials & chartsTradingView Financials
SharePadCompany financials, news, filters and portfolio managementSharePad Signup Page

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