What is Enterprise Value?

Modified on Mon, 18 Jun 2018 at 11:15 AM

What is the 'Enterprise Value (EV)'

The Enterprise Value, or EV for short, is a measure of a company's total value, often used as a more comprehensive alternative to equity market capitalization. Enterprise value is calculated as the market capitalization plus debt, minority interest and preferred shares, minus total cash and cash equivalents.

EV = market value of common stock + market value of preferred equity + market value of debt + minority interest - cash and investments.

Often times, the minority interest and preferred equity is effectively zero, although this need not be the case.


Source : Investopedia


Was this article helpful?

That’s Great!

Thank you for your feedback

Sorry! We couldn't be helpful

Thank you for your feedback

Let us know how can we improve this article!

Select atleast one of the reasons
CAPTCHA verification is required.

Feedback sent

We appreciate your effort and will try to fix the article