A measure of a company's total value, often used as a more comprehensive alternative to Equity Market Capitalization.
Enterprise value includes in its calculation the market capitalization of a company but also short-term and long-term debt as well as any cash on the company's balance sheet.
Enterprise value is used as the basis for many financial ratios that measure the performance of a company.
See also
Business / Business Administration / Financial Management / Financial Accounting / Accounting Equation
[ Equity ] [ Cost of Equity ]
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