Valuation Terms
Enterprise Value
A broader measure of company value that includes debt and adjusts for cash.
Also called: EV
What it means
Enterprise value, or EV, is often calculated as market capitalization plus debt and certain other claims, minus cash and cash equivalents. It is meant to represent the value of the overall business, not just the equity slice.
Why it matters
It helps users compare companies with different debt levels more fairly than market cap alone.