enterprise value

Definition

A measure of what the market believes a company's ongoing operations are worth. Enterprise value is equal to (company's market capitalization - cash and cash equivalents + preferred stock + debt). The number is of importance both to individual investors and potential acquirers considering a takeover attempt.

Use enterprise value in a sentence

You should try to keep up to date with your enterprise value so that you know exactly where you stand.

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The enterprise value was very high and it made some of us wonder what was going on to make it like that.

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The enterprise value of the new company looked dismal as the high value of their initial debt took away from their assets and gains which ultimately made it difficult for the company to continue.

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EV/EBITDA enterprise value to sales (EV/sales)