understanding financial jargon
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.
Copyright © Steve Gears Associates. All rights reserved. No portion of this site may be reproduced without written permission. All Trademarks are freely acknowledged.The information on this site is based on UK data unless otherwise indicated. Non-UK visitors should check with experts within their own legal jurisdiction before relying on information presented here.