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:
“God sent children for another purpose than merely to keep up the race—to enlarge our hears; and to make us unselfish and full of kindly sympathies and affections; to give our souls higher aims; to call out all our faculties to extended enterprise and exertion; and to bring round our firesides bright faces, happy smiles, and loving, tender hearts.”
—Mary Botham Howitt (20th century)