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 / 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

Subscribe for future posts

We do not give or sell your email address to anyone else, so you will not receive spam mail by subscribing to Bull Headed Bear. We hate spam mail as much as you!