Enterprise value: Difference between revisions
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(EV). | |||
The total value of a commercial business, whether funded by equity alone or by a combination of equity and debt. | The total value of a commercial business, whether funded by equity alone or by a combination of equity and debt. | ||
Also known as the 'entity value'. | Also known as the 'entity value'. | ||
Where the business is funded by both debt and equity the EV is given by: <br /> | |||
EV = market value of equity + market value of debt <br /> | |||
== See also == | == See also == | ||
* [[Enterprise]] | * [[Enterprise]] | ||
* [[Entity]] | * [[Entity]] | ||
Revision as of 12:12, 26 June 2015
(EV).
The total value of a commercial business, whether funded by equity alone or by a combination of equity and debt.
Also known as the 'entity value'.
Where the business is funded by both debt and equity the EV is given by:
EV = market value of equity + market value of debt
