What is the 'Enterprise Value (EV)'?

Enterprise Value (EV) is a measure of a company's total value, often used as a more comprehensive alternative to equity market capitalization.

Sharper Insight. Smarter Investing. Manage Preferences TERM OF THE DAY Enterprise Value (EV) The Enterprise Value, or EV for short, is a measure of a company's total value, often used as a more comprehensive alternative to equity market capitalization. Enterprise value is calculated as the market capitalization plus debt, minority interest and preferred shares, minus total cash and cash equivalents. Breaking it Down: Enterprise value (EV) can be thought of as the theoretical takeover price if a company were to... Read More Related to "Enterprise Value (EV)" What is the difference between enterprise value and equity value? Valuating a business accurately depends heavily on the purpose of the valuation. Learn how enterprise value and equity value can help clarify valuations. Read More Using Enterprise Value To Compare Companies Learn how enterprise value can help investors compare companies with different capital structures. Read More How can I find a company's EV/EBITDA multiple? Learn what the EV/EBITDA equity valuation metric is, how it is calculated and what information investors and analysts obtain from it. Read More Related Definitions Cash Equivalents Cash equivalents are investment securities that are convertible into cash and found on a company's balance sheet. Read More Preferred Stock A preferred stock is a class of ownership in a corporation that has a higher claim on its assets and earnings than common stock. Read More Multiple A multiple measures some aspect of a company's financial well-being, determined by dividing one metric by another metric. Read More Minority Interest A minority interest, which is also referred to as noncontrolling interest (NCI), is ownership of less than 50% of a company's equity by an investor or another company. Read More You are currently subscribed as: mondemand.forex@blogger.com Unsubscribe  |  Manage Subscriptions Investopedia, LLC, A Division of IAC. 114 West 41st St, floor 8, New York NY 10036 Copyright © 2018, Investopedia, LLC. All Rights Reserved Follow Us: