In financial terms, EV (Enterprise Value) refers to the total value of a company. It includes debt, cash, and non-operating assets, but does not include equity value. This makes EV an important metric for evaluating the overall health of a business and providing a more accurate measure of its intrinsic value than just looking at price-to-earnings ratios. EV is used by investors to compare companies of different sizes and in different industries, since it takes into account all elements of a company’s balance sheet. Put simply, it’s the sum of what a business would be worth if all its assets were liquidated and all its liabilities paid off.
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