Enterprise Value - EV
A measure of a company's value. Calculated as market capitalization plus debt and preferred shares, minus cash and cash equivalents.
Investopedia Commentary
Think of enterprise value as the theoretical takeover price. In the event of a buyout, an acquirer would have to take on the company's debt, but would pocket its cash.
Related Links
EV Gets Into Gear
See also: Cash and Cash Equivalents, Debt, Enterprise Multiple, Market Capitalization, Preferred Shares, Takeover
Also spelled: EV