LOADING
A measure of a company's total value, calculated as market capitalization plus total debt minus cash and cash equivalents.
Enterprise value represents the theoretical price to acquire an entire business. Unlike market cap, which only measures equity value, EV accounts for the debt a buyer would assume and the cash they would receive. For example, a company with a $500M market cap, $200M in debt, and $50M in cash has an EV of $650M. EV-based multiples (like EV/EBITDA or EV/Revenue) are preferred over price-based multiples for comparing companies with different capital structures. Two companies with identical market caps can have very different enterprise values depending on their balance sheets.