@wikipediaA 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 = Equity Market Capitalization + Total Debts - CCE |
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Enterprise Value is considered to be a more accurate measure of a Business value than Equity Market Capitalization when it comes to potential takeoverEnterprise value is used as the basis for many financial ratios that measure the performance of a company.
See also
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BusinessSociety / Business AdministrationEconomics / Financial ManagementBusiness / Financial Accounting Commercial Business / Accounting EquationMarket
[ Equity Market Capitalization ] [ Cost of Equity ][ Profit and Loss (P&L) ] [ DividendsCost of Equity ]