Mergers & Acquisitions

Resources: Glossary

Don’t be confused or intimidated by any terms or abbreviations in the M&A world. You’ll find answers here.

Enterprise Value (EV)

Definition

A measurement of a company’s total value, calculated as equity minus cash plus outstanding debt.

See Also

Book value, fair market value, market value.

Tips

Enterprise value is one of the many terms used to describe the value of a company. Enterprise value attempts to describe the value of a company more accurately by accounting for a variety of assets and liabilities that are not included in the other definitions of value. Market capitalization is the total value of all the outstanding shares of a company (i.e., equity). Enterprise value also includes the value of debt the company has assumed.

Related Resources

Business Valuation Standards of Value & Fair Market Value