oboloo Glossary

Enterprise Value For Private Companies

oboloo Glossary

Enterprise Value For Private Companies

Enterprise Value for private companies, or EVPC, is a method of valuing a company based on the market value of its equity, plus debt and other liabilities, minus cash and investments. It helps to calculate the true worth of a business, taking into account all financial obligations and assigned economic risk. EVPC can be used to establish how attractive a private enterprise opportunity is to potential investors, or to assess the current state and future prospects of an established business. By understanding and quantifying these factors, businesses can make informed decisions that drive success.