Enterprise value: Difference between revisions
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imported>Doug Williamson (Added link to Market value) |
imported>Doug Williamson (Order the formula the same as the preceding text.) |
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Where the business is funded by both debt and equity the EV is given by: | Where the business is funded by both debt and equity the EV is given by: | ||
EV = market value of | EV = market value of debt + market value of equity<br /> | ||
Revision as of 12:55, 28 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 debt + market value of equity
