Enterprise Value to Market Cap (EV/MC) is a financial metric that measures the market value of a company in comparison to its capitalization. It gives investors an idea of a company’s potential for growth and helps determine the overall worth of a business by taking into account all sources of capital, including debt and equity. Put simply, it’s the ratio of enterprise value to market cap—in other words, the total price paid for all of a business’ assets invested in its operations compared to the amount of money raised from issuing shares of stock. A higher EV/MC ratio typically indicates untapped growth potential, while a lower ratio implies more value concentrated in the company’s equity.