Market Cap Enterprise Value is a tool used in business to monitor the performance of a company over a period of time. It essentially takes into account the current market value of a company’s assets, liabilities, and outstanding shares when evaluating the company’s value. By comparing the enterprise value to the corresponding market capitalization (market cap), investors can get a better understanding of a company’s growth potential or risk profile. The higher the ratio between enterprise value and market cap, the more attractive the company may be for potential investors.