Enterprise Value Equity is a measure of a company’s total market value. It includes the market value of all its equity shares (equity capital, preferred stock, and retained earnings) plus the market value of debt, including both short-term and long-term liabilities such as accounts payable, taxes, and pension obligations. The formula for calculating Enterprise Value Equity is E = V + D, where E is the enterprise value equity, V represents the current market value of equity holdings and D stands for the market value of debt. In essence, Enterprise Value Equity gives investors an idea of what it would cost to acquire the entire company.
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