Question

What is the enterprise value of
a business?
*​

Answer 1

Answer:

Simply put it is the minimum that someone would pay to buy a company outright. Enterprise value is calculated as the market capitalization plus debt, minority interest and preferred shares, minus total cash and cash equivalents.

Answer 2

Enterprise value (EV) is a measure of a company's total value, often used as a more comprehensive alternative to equity market capitalization. Enterprise value includes in its calculation the market capitalization of a company but also short-term and long-term debt as well as any cash on the company's balance sheet.