Valuation

Enterprise Value

What it would cost to buy the entire business: market cap plus debt, minus cash.

Definition

Enterprise value (EV) is the total value of the business across all capital providers — equity holders, debt holders — net of any cash on the balance sheet that could be used to pay down debt.

Formula

Market Cap + Total Debt − Cash & Equivalents

Why it matters

EV is the figure an acquirer would actually pay for the whole company. It's the right numerator for any multiple where the denominator is a whole-business cash flow (EBIT, EBITDA, FCF). Using market cap instead would understate the true cost.

How Standard Equity uses it

Shown in the financial table. Used as the numerator for EV/EBIT, EV/EBITDA, and EV/FCF multiples.

The metric

CategoryValuation
Unit$M
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