Enterprise Value Calculator
What Is Enterprise Value?
Enterprise value (EV) measures a company’s total value, often used as a more comprehensive alternative to market capitalization. EV includes in its calculation not only the market capitalization of a company but also short-term and long-term debt and any cash or cash equivalents on the company’s balance sheet.
Key Takeaways
- Enterprise value (EV) measures a company’s total value, often used as a more comprehensive alternative to equity market capitalization.
- Enterprise value includes in its calculation not only the market capitalization of a company but also short-term and long-term debt and any cash on the company’s balance sheet.
- Enterprise value is used as the basis for many financial ratios that measure a company’s performance.
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