Enterprise value (EV), Total enterprise value (TEV), or Firm value (FV) is an economic measure reflecting the market value of a whole business. It is a sum of claims of all the security-holders: debtholders, preferred shareholders, minority interest, common equity holders, and others. Enterprise value is one of the fundamental metrics used in business valuation, financial modeling, accounting, portfolio analysis, etc.
EV is more comprehensive than market capitalization (market cap), which only includes common equity.
Read more about Enterprise Value: EV Equation, Comments On Basic EV Equation, Intuitive Understanding of Enterprise Value, Usage
Famous quotes containing the word enterprise:
“Every diminution of the public burdens arising from taxation gives to individual enterprise increased power and furnishes to all the members of our happy confederacy new motives for patriotic affection and support.”
—Andrew Jackson (1767–1845)