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:
“The chief lesson of the Depression should never be forgotten. Even our liberty-loving American people will sacrifice their freedom and their democratic principles if their security and their very lives are threatened by another breakdown of our free enterprise system. We can no more afford another general depression than we can afford another total war, if democracy is to survive.”
—Agnes E. Meyer (1887–1970)