If you are like most people in business, you have probably come across a thing called “enterprise value”. Many of you have wondered what it is (it’s business definition) and how it is calculated; as well as why it is important.
What is Enterprise Value?
Enterprise Value is the value of any business without any cash or debt included. It’s basically just another way to evaluate the value of a company.
How to calculate Enterprise Value:
To arrive at the Enterprise Value, you must calculate the Market Value of the business and then subtract cash and add debt.
