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total enterprise value

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Financial Dictionary

Total Enterprise Value - TEV

A valuation measurement used to compare companies with varying levels of debt. This is calculated as:

TEV = Market Capitalization + Interest Bearing Debt + Preferred Stock - Excess Cash.

Investopedia Commentary

Some people just use market capitalization as the value of a company, but some companies issue more equity than others, so this is why we include debt.

Related Links

EV Gets Into Gear

See also: Debt, Market Capitalization, Preferred Stock

Also spelled: TEV

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