Enterprise value (EV)
What it would cost to buy the whole business: the shares, plus the debt you would take on, minus the cash you would get.
Worked example · a round-number company
Market cap$10.0B+Debt − cash$1.0B=EV$11.0BHow to read it
↕Neither higher nor lower is better. It is a size, not a score. It matters as the top half of EV/Sales and other EV multiples.
Keep in mind
- Without reported debt, the boards use market cap in its place and mark the multiple †.
- Leases, pensions and minority stakes are left out, so EV can differ from other sites.