Enterprise value

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Revision as of 12:55, 28 June 2015 by imported>Doug Williamson (Order the formula the same as the preceding text.)
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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.

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


See also

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