Enterprise Value (EV)

Calculating the Enterprise Value of a company is a way of estimating the total market value of a firm. The calculation takes the total market capitalisation and adds the net debt. The net debt is usually defined as all long and short term debt minus any cash balance.

For example, if a company's market capitalisation is £50 million and it has debts of £5 million, and cash balances of £0.5 million then the Enterprise Value or EV is £54.5 million.

What to do if you need more help

If you need more help with your specific commercial loan, mortgage or insurance requirement please speak to a professional financial adviser.

We hope you found this information useful.

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