oboloo Glossary

Firm Value

oboloo Glossary

Firm Value

Firm Value, or Enterprise Value, is an economic measure of a company’s worth. The calculation takes into account both tangible and intangible assets and liabilities, providing an accurate overview of the total value of a firm. This value can then be used to compare one business with another, including measuring financial performance over time or comparing one industry to another. It is also useful for assessing potential acquisitions or mergers. In short, Firm Value presents an invaluable snapshot of a company’s current state, allowing managers and investors alike to make informed decisions in the present, while predicting future success.