Enterprise value - How To Discuss
Enterprise value,
Definition of Enterprise value:
Market value of a firms total capitalization: equity plus debt less the value of assets not critical to the firms core business.
Meaning of Enterprise value & Enterprise value Definition
Enterprise Value
Enterprise value is often used as an alternative to simple market capitalization, especially when it comes to acquisitions.
It is calculated as market capitalization (the number of shares outstanding multiplied by the current share price) minus cash plus debt.
This is believed to be a more accurate estimate of the purchase price than market cap, as any buyer will embezzle the company's money and assume its debt.
