Market capitalization, also known as market cap, is the total dollar value of a company’s outstanding shares. It is calculated by multiplying the share price by the number of shares issued. Enterprise value (EV) is an overall estimate of a company’s financial worth. It is used to measure how much it would cost to acquire a business in its entirety—including debt and other liabilities. EV adds market cap with net debt while subtracting cash reserves and investments. In essence, EV is a more comprehensive measure of a company’s worth than market cap, as it takes into account both debts and assets of a firm.