Enterprise Value

Enterprise Value (EV) is a measure of any company’s total value, often used to be a more comprehensive substitute for equity market capitalization. The market capitalization of an company is basically its share price tag multiplied by the amount of shares a corporation has outstanding. Enterprise value is calculated because market capitalization in addition debt, minority attention and preferred gives you, minus total income and cash equivalents. Quite often, the minority attention and preferred collateral is effectively absolutely nothing, although this need not be the event.