# 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

| Category | Valuation |
| -------- | --------- |
| Unit     | $M        |

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