Enterprise Value (EV) is an important metric for businesses, as it reflects their total economic value and is used to compare firms of different sizes. Put simply, Enterprise Value measures the true market value of a business, including its debt, equity, minority interests, and its other liabilities. It is calculated by adding the company’s market capitalization (the price of all outstanding shares multiplied by the number of shares) to the total market value of all its debts, minority interests, and preferred stock. This calculation helps provide a more accurate view of a company’s value than its share price alone can provide. It also allows potential investors to better compare companies across different sectors when assessing investment opportunities.