oboloo Glossary

Enterprise Value Of A Company

oboloo Glossary

Enterprise Value Of A Company

Enterprise Value, or EV for short, is a measure of a company’s total value and is the sum of the market capitalization of the business, plus any outstanding debt or minority interest, minus any cash reserves. It’s a useful tool for investors and analysts who want to evaluate a company’s overall financial position without factoring in shareholder equity. Put simply, it’s a gauge of what a company is worth holistically. Enterprise Value gives you an accurate picture of a company’s value from top to bottom – and helps you understand how its stock may perform in the long run.