What is Enterprise value?
Enterprise Value is a metric that is used to assess the total value of a company by factoring in debt and cash. It is a less popular alternative to market capitalization, but it can give a more clear picture of a company’s true value.
What does Enterprise value mean?
It is believed that Enterprise value can be used to calculate how much a company will cost if it is bought out by another company. It is different from market cap because it factors in other variables like debt and cash.