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Valuation

What Is Enterprise Value?

Definition and plain-English explanation of "Enterprise Value"

Enterprise Value — Valuation illustration

Enterprise value (EV) is a more complete measure of a company's total worth than market cap. It adds debt and subtracts cash from the market capitalisation, reflecting what it would actually cost to acquire the whole business. EV is used in valuation multiples like EV/EBITDA to compare companies with different debt levels.

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