Implied Enterprise Value Formula is a fundamental concept of business valuation that helps calculate the enterprise value (EV) of a company. It works on the assumption that the enterprise value of a firm is equal to the sum of its equity market capitalization plus its debt obligations minus its cash holdings. This formula can be used to compare companies across different industries, regions and sizes. By taking into account all three components, the Implied Enterprise Value Formula provides a more holistic understanding of company performance and potential.