Market cap plus debt minus cash — the theoretical takeover price.
EV reflects what an acquirer would actually pay: equity owners get market cap, debt must be assumed, but the acquirer captures the cash. EV is preferred over market cap when comparing companies with different capital structures.
Market cap plus debt minus cash — the theoretical takeover price. EV reflects what an acquirer would actually pay: equity owners get market cap, debt must be assumed, but the acquirer captures the cash. EV is preferred over market cap when comparing companies with different capital structures.
In valuation, Enterprise Value (EV) is one of the building blocks investors use to compare opportunities and assess risk. Understanding it helps you read research notes, earnings reports, and market commentary without getting lost in jargon.
EV reflects what an acquirer would actually pay: equity owners get market cap, debt must be assumed, but the acquirer captures the cash. EV is preferred over market cap when comparing companies with different capital structures..
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