Enterprise Value (EV)

Enterprise Value (EV) represents the total value of a company to all capital providers (equity holders + debt holders - cash) and is a foundational concept in stock valuation. It is a capital-structure-neutral measure of a company's worth.

Formel

EV = Market Cap + Total Debt - Cash & Equivalents

Beispiel

A company with a market cap of $100B, $20B in debt, and $10B in cash has an EV of $110B. This is the theoretical takeover price an acquirer would pay.

Warum es wichtig ist

EV is preferred over market cap for company comparisons in stock valuation because it accounts for debt and cash differences. It's the numerator in EV/EBITDA and EV/FCF ratios and is a key output of DCF analysis.

Wie MiniValuator Enterprise Value (EV) verwendet

MiniValuator's stock valuation DCF model works directly in per-share terms, so it does not compute a separate enterprise value or subtract net debt. Enterprise value is shown here as standard valuation background, not a step the tool performs.

In der Praxis

Verwandte Begriffe

  • Discounted Cash Flow (DCF) Discounted Cash Flow (DCF) is a fundamental stock valuation methodology that estimates the present v...
  • Exit Multiple An exit multiple is a stock valuation ratio (such as EV/EBITDA or EV/FCF) applied to a financial met...
  • Intrinsic Value Intrinsic value is the estimated true worth of an asset based on its fundamental economic characteri...

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