What is Enterprise Value?
In this glossary, Enterprise Value refers to: The total value of a business calculated as equity market capitalization plus total debt and minority interest minus cash and cash equivalents; used in M&A, valuation, and financial analysis.
How is Enterprise Value used in finance?
In finance communication, this term appears in contexts such as: "Enterprise value provides a comprehensive measure of a company’s total value and is used in acquisition multiples and takeover analysis."
Why does Enterprise Value matter in finance?
Enterprise Value matters because it supports clear communication in Analysis contexts for Financial Analysts, Bankers, and Traders. It also connects to aviation training and exam language such as CFA, ACCA, and FRM.
Who uses Enterprise Value?
Enterprise Value is mainly used by Financial Analysts, Bankers, and Traders.
What category does Enterprise Value belong to?
In this glossary, Enterprise Value is grouped under Analysis. Related pages in this category explain adjacent procedures, commands and operational concepts.
Where does this definition come from?
This definition is sourced from CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework and published by Protermify Finance as a static finance reference page.