Enterprise Value
Enterprise Value (EV)
Valuation RatiosThe total value of a company including both equity and debt, minus cash. Represents what it would cost to acquire the entire business.
Formula
EV = Market Cap + Total Debt - Cash
Why it matters
EV is more comprehensive than market cap as it accounts for debt burden and cash reserves. Used in EV/EBITDA multiples.
Indian example
Related terms
Learn the concept
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